YEREVAN, June 6. /ARKA/. Gold is steadily rallying today as the dollar is sliding against many world currencies amid uncertainty over the euro zone sovereign debt problems, according to reports fr om stock markets.
By 11:45 Moscow time, gold futures for delivery in August climbed 0.7% to $1627.9 an ounce.
The U.S. dollar went 0.23% down against six nations’ currencies to 82.61 points.
As a rule, a weak dollar supports gold cist making it lower for those having other currencies, RIA Novosti reports.
Experts say demand for the precious metal may drop in India, a large gold importer, wh ere the price in the national currency came close to the record high, especially after the rupee sank against the dollar in recent months.
“This may present headwinds to any further rallies and curb Indian import demand,” HSBC analyst James Steel told MarketWatch agency.
In 2011, gold rose about 10%. As a result, this 11-year period of this metal’s growth has become longest at least since 1920.
Gold price jumped 6.7% in the first quarter of this year, but in May, it plunged 6% at once.
Investors point out Europe’s debt crisis and the accelerating inflation in many countries as key factors supporting gold, which is considered as a reliable alternative to unstable currencies and companies’ stocks. -0-