On Monday, spot gold gained value, sending buyers in Asia a thrill, as they rushed to get their hands on bargains after in the previous session, spot gold dropped by 2-percent almost. There is also lots of uncertainty ahead, with the heavily indebted Greek nation trying to strike a deal with its bondholders to avert default. The high amount of uncertainty is also another reason for people to rush towards spot gold, sending prices upwards.
Last week on Friday, after the news of United States economy adding 243,000 jobs in the economy in January 2012 was revealed by the Labor Department of the country, equities and industrial metals jumped but surprisingly, bullion posted its largest daily drop in more than thirty dates as the data led down hopes of new and revised measures of quantitative easing.
Traders and analysts are still hopeful about the outlook of gold. These groups also have a reason to be positive about gold because the gloomy global economy and increasing pressure coming from the European zone are reasons why central banks of different countries will use an accommodative approach to their monetary policies.
According to ANZ’s senior commodity strategist Nick Trevethan, quantitative easing in the third quarter is less likely following the jobs data report by the United States however in the longer run, he said that low interest rate outlook will still support gold.
Spot gold increased by 0.5 percent, as it settled at a value of $1,733.75 per ounce around 0614 GMT. Whereas, U.S gold dropped by 0.2 percent, as it settled at a value of $1,736.40.
On the other hand, according to technical analysis, spot gold might increase to $1,742 per ounce. Moreover, traders said that traders in Asia hunted for bargains, particularly in China, which also helped gold prices in rebounding.
