Inhibiting rate of Gold Price in 2012

As a safe-haven asset, gold also hard commodity and sensitive to macroeconomic news. This factor could disrupt gold rally in 2012.

Besides safe haven, gold is a hard commodity category. Gold including in the three risky worlds of investment products such as stocks and currencies. Therefore, under certain conditions, gold provides a considerable advantage but the risk is too high.

Gold prices are affected by fundamental news such as GDP (Gross Domestic Product), inflation, unemployment, consumer confidence index and market rumors. "That factors, which could be inhibiting gold rally in 2012,”

Current that could hamper the strengthening of gold prices is global economic crisis. "Even in crisis people run to gold as a safe haven, but keep in mind, gold also commodity product,"

Just that the influence of this side (gold as the commodity product) is relatively small compared to other factors. However, fundamentally, investors are faced with the issue of the global economic slowdown that could reduce demand for gold.

Expectations appeared begins of China Gross Domestic Product (GDP) in the third quarter of 2011, which fell to 9.1% from 9.5% previously. European GDP also fell to 1.4% from 1.6%. Also with the U.S., growth fell to 2% from 2.5%.

Conditions, exacerbated by the consumer confidence index from Germany representing Europe also fell sharply to -55.2 from -48.3. Also U.S. consumer price index in October 2011, which fell to 39.8 from 46.4 the previous month.

However, for investors not to worry. Because, in the history of gold prices never go down sharply. Price reduction, only a minor correction after rising significantly.

Especially in its history, gold has only a one-time reduction in which the price is lower than the previous year. In 1980, gold prices could rise to U.S. $ 835 per troy ounce and fell sharply to a level of U.S. $ 481.50 within 2-3 months in the same year.

Then, gold continued weakening until 1982 to a level of U.S. $ 296.75. Since 1982, gradually, creeping up to 2008 gold reached U.S. $ 835. That is, the gold back to those levels in the 28 years since 1980.

So, a sharp reduction in gold which occurs only once in 1982 and later years have continued to rise.

Indeed, in 2008 gold had dropped when the financial institution Lehman Brothers declared bankruptcy. Beginning of 2007 gold at U.S. $ 636.80 up to U.S. $ 1030.80 per troy ounce in 2008.

Then, gold experienced sharp falls in the same year in October to reach the level of U.S. $ 680.80 per troy ounce. However, this figure is still higher than the opening price on the 2007 level of U.S. $ 636. "After October 2008, gold continues to rally until it reaches its highest level in the history of U.S. $ 1,920 per troy ounce in September 2011.

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