Gold Prices Rise in February as US Dollar Value Increases

Gold prices recorded a rise this week and so did the US dollar. With an addition of $10.40, gold for delivery in April will be sold at $1,728.10 per ounce. The New York Mercantile Exchange’s Comex division will offer gold at this price. In the recent months, there have been fluctuations in gold prices, which ranged between $1,739.20 and $1,720.30 per ounce. The index of US dollar rose by 0.23%. It is currently at $79.59.

French Economy Growth Leads to Gold Price Hike

The gold price hike stemmed from the growth in the French economy. 0.2% growth was recorded in France in the first quarter. Euro’s value increased. This came as a surprise. So did a recent announcement by China that it will continue its policy of buying assets which are euro backed. A few of these assets are bonds from the European Stability Mechanism, European Financial Stability Fund and a permanent bailout fund.

Good State in US Market Fades After Low Industrial Production

The good state in the US market faded for a while due to low industrial production in January. The US dollar got a foothold when investors did not get sufficient stocks. For the same reason, gold prices also increased. FastMarkets.com’s financial analyst, James Moore stated that in case the physical demand for the metal goes down, its price can be as low as $1,700 per ounce.

Gold Prices may Drop

The Vice President of TradeStation’s applied technical analysis, Stan Dash warned traders that there are possibilities of gold prices dropping in the near future. This will become a reality especially if traders go on a long weekend holiday in the coming weeks.

Chuck Butler, EverBank World Market’s president stated that he is confident that quite soon gold prices will be as high as it was last year. He considers the metal to be anti-dollar. Butler stated that unless the US economy has a balanced budget, or increases its interest rates, Americans will continue to consider gold’s value against the dollar. This is especially true for customers who are regular gold buyers.