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After dipping midweek, due to the dollar gaining strength, gold ended the week in a similar situation to the beginning on $1,100.
The fluctuating dollar was seen as a reflection of the Federal Reserve in the U.S, hiking up the discount rate. The discount rate is the interest rate the central banks in the U.S charge to financial institutions.
In Europe the euro still remained weak due to the ongoing Greek debt crisis. This further highlights the fact that the euro appears to have a fundamental problem.
The World Gold Council (WGC) reported this week that gold demand has fallen by 11% on last year but critics say that the figures don’t reflect the increase in demand from Industry and the jewellery market.
Gold bullion analysts during last week further predicted a gold boom, encouraging investors that now would be a good time to buy gold. With more and more countries like China, India and Russia purchasing gold bullion as an alternative investment to the U.S dollar, this can only further give food for thought. |