Precious metal Gold hit the lowest mark in the first quarter of 2012 as investors show less interest in it and invested largely on Dollar and strengthens it.
The inflation rate in the United States also comes to the lowest point since two years, which limited the demand of the popular metal of the investors. The similar trend was seen in China where the inflation also declined.
Gold has been the first choice for the investors from past few years not only in United States but worldwide. The huge investment in gold had increased its prices to the sky and subsequently the investments in other sectors were on the decline.
Lowest settlement for gold
The latest decline in gold prices is lowest since December 30 and according to the analysts it is not going to increase in the coming time. The delivery of the hugely invested yellow metal Gold fell by $ 11.50 and settled at $ 1,584 a troy ounce which is 0.7%.
In the week gold knock down by 3.7 per cent and has been on the decline in the 8 out of 10 trading sessions in the Comex division of the New York Mercantile Exchange. Knocking down of gold has increased worries in Europe who is already facing debt crisis.
Jimmy Tintle, gold market analyst with GreenKey Alternative Asset Services said, “I don't see a lot of buying coming in. You don't see a lot of inflationary concerns.”
European debt crisis is among the primary reason why investors are heading toward dollar in place of gold. There are chances that Europe could be facing financial freeze as Greece has failed to form a coalition government.
Kitco Metals analyst Jon Nadler in a note said, “There are naturally quite a number of questions surrounding the yellow metal's near- and medium-term fate. There is little in the way of chart support for gold until the $1,527 level is touched and such an excursion could take place in short order.”