The cheaper gold is, the deeper the Euro crisis is
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Previously the gold price was declining along with the EUR-USD quote. However, by the end of the trading day, it broke free and correction started.
Having sagged to the level of 1thousand 5hundred and 37.5 US dollars, the gold price rose by 20 points to 1567.5 US dollars per troy ounce.
Конец графика
During the day, the precious metal was affected by news on European auctions which brought into light a serious exa-cer-bation of the debt crisis. This burning issue has been sending Eurozone countries deep into recesson, what is more, it has been exerting extremely strong pressure upon the gold price.
Italy debt sale turned out to be disappointing. Demand for Italy bonds is decreasing; bond yield is growing, which means an accumulating government debt. 10-year bonds of Italy reached high since January 30.
In the meantime, the gold price was backed up by fundamentals from the neighboring continent.
In accordance with the economic calendar, traders were looking forward to release of the US labour market report. Pending home sales had been expected to remain flat, yet the actual reading of the indicator appeared to be negative frustrating investors and driving the gold price up higher.
