Gold Prices Rise Again, Analysts Remain Bullish

October 04 00:00 2011

NEW YORK, October 4 ( – The market is clouded with concerns over Greek default, which could initiate another Global recession. Investors find it safe to switch from equities to Gold as it marked one week high on Monday.

The Greek government admitted that they would not meet the deficit targets this year, which raised worries among the investor community. Euro zone being under the crisis mode which diverted the attention of investors towards US dollar which touched their 9 month high, and Gold futures which witnessed a 1 percent jump.

Gold’s spot price rose by $8.99 at 1,665.39 an ounce, on the other hand US Gold futures added $10 to $1667.7an ounce. On Monday, the US dollar showed strength against Euro and Swiss Franc due to the fear gripping the market of Greeks default. The Euro slipped by 1.2% at $ 1.3228 and it touched lowest of past few months at $1.3190. The dollar sparked a high of $0.9200 against the Swiss franc, and last traded at 0.9178, up 1.1 percent.

An analyst at Philips Futures in Singapore, Ong Yi Ling said, “The long term uptrend for gold remains intact and we remain bullish. Gold could climb to about $2,000 an ounce in 2012. Safe haven bids could slowly return as prices stabilize,”