The news with the stronger affect on the international market came from the Euro Zone today, where European financial ministers were unable to resolve issues. A new meeting was scheduled for the next Monday, after a nearly 12-hour conference. No additional explanations were provided yet. Consecutively, markets reaction is very negative. The Euro tumbled down to trade at 1.2750 this morning.
By 03:17 GMT today, spot gold trades steady at $1,726.60 per ounce.
US gold raised up merely 0.2% to $1,726.70.
Silver futures prices gained 0.58% to $1,115.91 per kilo in the Mumbai marketplace, while MCE December silver futures raised 0.58% and silver for March delivery traded higher to 0.49%.
This year the demand for imitation jewelry has rebounded by over 85% due to the sharp rise in gold and silver prices. Most buyers are looking for plated gold or silver instead of solid metal jewelry in order to lower their expenses.
In the third quarter of 2012, worldwide gold demand fell according to a report by market fundamentals. China buyers held back because of their economic slowdown and other investors bought fewer bars and coins. The World Gold Council showed the in the three months through September about 1,085 tons of gold were being sold all over the world. That is 139 tons down, or 11% from the previous record of 1,223.5 tons.
- Read more: Global gold demand 14% lower so far in 2012
In 2012 year spot silver has rose 17%, surpassing gold’s 10% jump. This represents the metal’s third annual rise in four years.
In the current economic situation, the yellow metal is seen as a safe haven investment asset and its prices are expected to trade high. Economic data statistic shows that the number of unemployed in US is likely to increase further. Consumer confidence will also remain stagnant. Tuesday positive housing data boosted the power of the US dollar which also affected the price of the yellow metal.
According to 2012 Interim Report released by Reuters – silver prices are expected to increase 38% during 2013 from current prices as the sluggish global economy increases the demand for this precious metal.