Economist said today that gold prices poised for further gains this week with an expectations of the application of a new quantitative easing process for the U.S. economy, where yellow metal achieved $ 1670 dollars per ounce by the end of trading last week.
He added, that the rise strong witnessed by the market during trading last week was due to permit Fed President George Bernanke fears a recession again if no action is taken motivational Links.
He explained that dealers in gold awaiting the outcome of the next meeting of the U.S. Federal Reserve, set on September 13, where he is expected to resolve the controversy over the need for new stimulus measures to head the process of quantitative easing (printing money).
Hamed said that gold prices are going to the highest peaks of experienced over the last week, “if the United States implemented a new quantitative easing process and we will see the level of 1700 U.S. dollars per ounce again.”
He stressed that there is a great desire among investors around the world in the application of hedging measures through the demand for the yellow metal as a last resort after the uncertainty of the security that the U.S. economy and the European sovereign debt crisis “will not find effective solutions, especially after 3 years.”
He said Hamid said the euro exchange rate has had a profound impact on the rise in gold prices over the past week when dropped against the dollar after four days of gains, especially after the plan stalled European Central Bank to buy government bonds until the verdict of the German court on bailout fund cash Permanent Europe.
He stressed that the continuation of actions stimulus both in the United States or Europe would reduce the value of the currency, especially after comments by German Chancellor Angela Merkel that she wanted to stay Greece in the European monetary union and that Germany is ready to help the Greek government to take the necessary steps to resolve economic problems.
He added that gold prices in the coming period is possible to see a speculative operations and reap a quick profit will have a “my time” on the upside and quickly returning series rises again, “because the problem is in the economic fundamentals andit is not a real problem.”
And the performance of the local market said the ongoing purchases by Kuwaiti investors convinced many of them that the performance of gold during the current period will exceed the performance of the Kuwait Stock Exchange (KSE) with the continuation of the domestic financial crisis and lock ports invest locally.
The gold rose to its highest level since 4 months by the end of Friday’s trading last to close at 1670 USD/troy per ounce and increased the value of futures contracts for gold (delivered December) by 2 percent while the platinum to 1558 dollars per ounce, its highest level since last April.