PRICE of gold continues to rise after surging 2 percent in trading Thursday. The rise in gold prices could not be separated from the steps the U.S. Federal Reserve, the Federal Reserve, which issued a new stimulus to encourage job creation in the U.S..
Reuters news agency reported Friday, September 14, 2012, the price of spot gold traded at U.S. $ 1,766.75 U.S., after surging 2 percent on Thursday to U.S. $ 1,772.26, the highest since February 29. Meanwhile, the index of commodity Thomson Reuters-Jefferies CRB index rose 0.55 percent on Thursday, touching its highest level since March.
In Singapore, spot gold prices on Friday morning, up 0.1 percent to U.S. $ 1,768.44 per ounce. Throughout this week gold has risen 1.9 percent. This represents an increase of gold for four consecutive weeks.
Why is gold so attractive for investors to continue to strengthen in the past four weeks?
Jeff Sica, chief investment officer of Sica Wealth Management currently manages client assets of more than U.S. $ 1 billion, to see that gold as a major investment in the face of a weakening dollar.
“The appeal of gold as a refuge from the fear and the secondary currency has never been unparalleled,” Sica said in an e-mail to Reuters. He estimates that commodity prices will continue to rise.
Sica doubt that the market euphoria will not last long, as investors will soon shift their focus to the economic fundamentals are weak.
Although traded slightly higher, in fact during the weakening dollar. The dollar index, measured against a basket of currencies in the world, hovering near its lowest level in four months, at 79.18.
The dollar traded up 0.1 percent at 77.57 yen, recovering from a seven-month low at 77.13 yen. The euro held steady at U.S. $ 1.2987, just below the highest level in four months at U.S. $ 1.3002.