Gold prices rose at the end of trading on Monday against the backdrop of the continuing expectations of new measures to support the economy from the ECB and the U.S. Fed.
By the end of the session, August gold futures on the New York Stock Exchange rose in price by 0.7 dollar - up to 1618.70 dollars per troy ounce.
Investors are hoping that regulators will take measures to mitigate the current monetary policy on the background of coming the last weeks weak macroeconomic statistics. In particular, as it became known on Monday, the index of consumer and business confidence in the euro zone economy (ESI) in July decreased by 2 points compared with June - to 87.9 points, while expected to decline only to 88.9 points from 89, 9 points in June.
More significant growth of quotations of gold has limited results of the auction of the Italian Ministry of Finance, which posted the long-term government debt securities totaling 5.749 billion Euros.
The sum was greater than expected - Ministry planned to earn from 3 to 5 billion Euros. Thus a five-year government bond yield fell to 5.29% from 5.84% in the June 28 auction, and the yield of ten-year securities fell to 5.96% from 6.19%.
The increase in gold prices in 2011 amounted to almost 10%. As a result, eleven-year period of the rising cost of this metal is the longest, at least since 1920. During the June 2012 value of the metal rose to 2.8%, while for the second quarter – went down to 4%.
The main factors supporting the value of gold, which is generally regarded by investors as a more reliable alternative to volatile currencies and unstable shares of companies, are the debt crisis in Europe and the acceleration of inflation in different countries.
You might also like:China seeks expansion of private investments in vital parts of the economyMario Draghi: First Step in the Right Direction or Empty Promise?Moody's downgraded ratings of 17 German banksTARP Darlings in Big TroubleEurope lifted shares of Italian banks