05-09-2011, 09:11 AM
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#1
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:: عضو محترف ::
تاريخ التسجيل: Feb 2011
المشاركات: 279
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gold prices in saudi arabia
easy-forex
Is the gold price bubble ready to burst?
In recent weeks the price of
has seemed to defy the laws of gravity, making fresh trading highs every day before hitting a record above $1,900 an ounce in mid-August.
price rise of gold ended abruptly with a sharp two hundred
sell off shortly thereafter and has continued to experience increased volatility with $50
swings. The
volatility raises concern that the uptrend in gold is ending and the
rise may
a bubble that is about to burst.
The
driver for the price of gold is
flow seeking a safe haven and
hedging against
. Global concern about sovereign debt risks in the US and
and uncertainty about the
are the
risks
demand for gold.
According to the World Gold Council,
for gold remained strong in the second quarter of 2011. China and India
the largest buyers of gold; however the World Gold Council reports that
was one of the top
buyers in 2010, but demand has declined by 21 tons in Q2 2011 or 16% below the
year’s levels. The
demand for gold from the Middle East region has been
to the rising price of gold and continued regional unrest
purchases of
jewellery. saudi arabia is the largest jewellery producer in the
using 140 tons of
a year.
The
for
remain
with prices likely to find support from three major
; portfolio diversification,
against inflation/
risk and central bank
. Investors will
to look to gold for portfolio diversification
it is not
correlated with most other ***ets.
nationals
significant US
***ets and
of the US
rating,
with
equity
volatility, makes
an important
of an
portfolio to
and manage
.
easing
the Federal
and weakening of the US dollar are major factors
the
of gold. With US interest rates at a record low, and the
budget
expanding at a
pace, the US dollar faces an increased risk of
.
has
as an
to the US dollar and other
.
around 86% of
revenue coming from
and oil
in US
, gold is also
used as a hedge against a
US dollar and to diversify US dollar reserve
in
.
In addition, the
recently warned of the risk of
inflation in
, which also reflects
food
and
.
bank
for
is rising as
add gold to diversify their reserves. The World Gold
reported
June
Arabia doubled its gold reserves to 322.9 tons from 143
in 2009.
The Saudi central
is ranked
among world
banks in
to their
of gold reserves.
Although the
suggest that gold prices may be
, some economists warn that the sharp price rise and
volatility in the
of gold makes gold less of a safe haven and risk
are the only
that
be deployed in the gold market now.
may
flows and pave the
for more short-term
in
.
as
uncertainties remain unresolved it is likely
,
,
and investors will continue to buy
to try to
their
.
Forex trading involves substantial risk of loss. Do not invest money you cannot afford to lose.
EF Worldwide Ltd, registered in Guernsey
Nicolas Shamtanis
Dealing Room Manager
easy-forex
gold prices in saudi arabia
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