Friday, 18 Jun 2010

Spot Gold Rises to a New Record High

The euro fell slightly versus the dollar in today's New York trading session. A lack of economic data on the calendar characterized a lackluster performance from most currencies. However, the price of spot gold climbed to a new record high today to finish the week on a high note.

In light trading, the euro fell to trade at a rate of 1.2362, down from an opening price of 1.2404. This caps a week of significant improvement for the euro as the currency has risen to its highest level since May 28th.

The correction in euro has notched a gain of roughly 2% in the value of the EUR/USD. The improvement in the euro may be due to better than expected news from the euro zone, a successful auction of Spanish bonds, and disappointing economic data from the U.S. At times when the euro news was poor performing, traders shrugged off the negative sentiment and continued to buy the euro. Proposed European bank stress tests may very well serve to boost investor confidence in the euro zone financial players, but the underlying factors still point to negative long-term fundamentals for the euro.

Spot gold prices continue to rise and today have set a new all-time record high at $1262.20. The previous record high from 10 days ago was $1251.76.The price has been steadily rising on increased concerns over the European debt crisis. Another factor that has helped to boost the price of spot gold is a rumor that China may purchase gold bullion to diversify their foreign exchange holdings.