The price of gold continues to rise

The price of gold futures rose to a record high for the second consecutive day after the costs of the wholesale sector of the United States rose more than expected in July, boosting demand for precious metals as a hedge against inflation.

The index of producer prices gained 0.2 percent last month, according to the Labor Department said. Economists predicted an increase of 0.1 percent. From the standpoint of currencies, instead, the dollar fell to 0.8 percent against a basket of six currencies. From all this it earns gold, which also yesterday reported a rise in its value, for a total of 26 percent this year, reaching an intraday high of 1,817.60 dollars an ounce on 11 August.

According to the history of inflation is returning, with the weak dollar which helps increase the value of gold.

Remaining currencies on the speech, but moving in Europe, German Chancellor Angela Merkel and French President Nicolas Sarkozy has rejected an extension of the rescue fund Poer the euro area, while the Swiss central bank said it will take further measures if necessary to counter the strength of the Swiss currency.

Here, among all these statements, the gold remains the most attractive assets in the short term, considering that the uncertainty about the future of the euro zone will not end anytime soon.

And 'historically known fact that when the currencies go wrong the price of gold rises, as the yellow metal is seen as a safe haven, so the only way to save their capital in case things turn start to go wrong. If the dollar and the euro should therefore continue to have difficulties in the coming weeks and months to come, it is very likely that the price of the yellow metal rises again.

Posted in: Gold