Thursday, February 3, 2011
The price of gold in the spot market surged to record 2 percent to U.S. $ 1,338.39. It is a spike in price of gold the biggest since December, when the gold price had jumped to 2.6% due to economic data which triggered fears of interest rate hikes. In early trading sessions, the price of gold was at its lowest point in U.S. $ 1,308 per ounce.
Confusion occurred in all investments except the gold. Obviously, the money flowing into gold as the safest investment. Because no one knows how this situation will be completed by itself. The riots in Egypt will not be completed in the near future and gold price is believed to benefit further from the possibility of widespread unrest to other countries in the region.
Prices of gold futures contract for February recorded rises to a level of 22.3 dollars per ounce to U.S. $ 1,340.70 with total volume reached 300,000 lots, the highest since November. There are many factors that determine the gold spots, just like any other commodity. The price of gold is influenced by demand and supply. Total gold demand generally comes from those who produce and sell jewelry, electronics, dentistry, and for other monetary reasons as a store of value.
Gold is a highly efficient electrical conductors, so that electronics manufacturers also have a great need of gold. Golden opportunity for very little rusty, so it is also widely used in dentistry. It can be used to make dental appliances, with other metal alloys.