Once again bullion experienced a rise on account of fear of global economic slowdown. It touched
US$1794 an ounce before closing at US$1787 an ounce hence displaying a minor positive change of
0.07%.
This global economic deceleration is evident from the following important information:
• In London, the national unemployment total increased more than forecast, with an increase
of 38,000 to 2.49mn.
• There have been forecasts for a slower growth in China.
• Bad loans at Chinese banks are expected to rise to very high levels, hence eroding profits and
slowing growth. China’s local governments are trying hard to repay their debt.
• Japan’s exports fell more than expected in July on account of global slowdown and declining
overseas currencies.
The exports decreased 3.3% in July as compared to same period last year.
Exports to China, which is Japan’s largest overseas market, dropped 1% in July.
Shipments to the U.S. declined by 8.2% and witnessed a 6% increase to those made
to the European Union.
• Japan’s GDP reduced at an annual rate of 1.3% in the 3months ended June 30 owing to the
earthquake that interrupted manufacturers’ supply chains.
• Germany's GDP increased by a meagre 0.1% in the 2nd quarter which was less than the
expected increase of 0.5%.
The above factors are attracting investors towards the yellow metal as an investment haven and
causing a hike in price day after day. Hence, on the basis of the continuing economic slowdown and
the unresolved European debt crisis, we expect gold to increase further and cross the US$1814 mark.
However, a fall to US$1752 an ounce could be expected once more as the metal is soaring too high
US$1794 an ounce before closing at US$1787 an ounce hence displaying a minor positive change of
0.07%.
This global economic deceleration is evident from the following important information:
• In London, the national unemployment total increased more than forecast, with an increase
of 38,000 to 2.49mn.
• There have been forecasts for a slower growth in China.
• Bad loans at Chinese banks are expected to rise to very high levels, hence eroding profits and
slowing growth. China’s local governments are trying hard to repay their debt.
• Japan’s exports fell more than expected in July on account of global slowdown and declining
overseas currencies.
The exports decreased 3.3% in July as compared to same period last year.
Exports to China, which is Japan’s largest overseas market, dropped 1% in July.
Shipments to the U.S. declined by 8.2% and witnessed a 6% increase to those made
to the European Union.
• Japan’s GDP reduced at an annual rate of 1.3% in the 3months ended June 30 owing to the
earthquake that interrupted manufacturers’ supply chains.
• Germany's GDP increased by a meagre 0.1% in the 2nd quarter which was less than the
expected increase of 0.5%.
The above factors are attracting investors towards the yellow metal as an investment haven and
causing a hike in price day after day. Hence, on the basis of the continuing economic slowdown and
the unresolved European debt crisis, we expect gold to increase further and cross the US$1814 mark.
However, a fall to US$1752 an ounce could be expected once more as the metal is soaring too high
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