Weakening Trend in Gold Prices…..

Blessings Summit European Union (EU summit) for the gold did not last long. Price rally on Monday (2/7) stops, and the gold re-sloping. In addition to profit-taking, gold re-locked concerns over the global economic slowdown.

The gold contract for delivery in August 2012, at the New York Mercantile Exchange's Comex division, Monday (2/7) at 17:15 GMT, worth U.S. $ 1,592.8 per Troi ounce, or 0.71% lower. At the end of last week, gold prices closed valued at U.S. $ 1,604.

The price of gold, over the weekend, torn up so the top brass of the European Union loosened the requirements for the disbursement of aid for Italy and Spain.

But sentiment was again outstanding fade after projection, the European Central Bank will cut interest rates. Triggering speculation that the unemployment in Europe, by the end of May, reached a record high.

Negative news also came from China's manufacturing sector. Orders from abroad are reduced to this sector slowed in the last seven months. This adds to fears that Europe's debt crisis will disrupt the global economy.

"It's hard to maintain the momentum of last week's rally because European countries are still burdened with debt and fully solving the crisis is still not visible," said Sun Yonggang, an analyst at Everbright Futures. Sun said, gold is still unable to compete with the U.S. dollar as a safe haven.

Still trending down

Head of Futures Research Investindo Monex, Ariston Tjendra, say, the positive momentum after yesterday's EU summit have not been able to bring the gold up through the downtrend line. "So technically, gold is not yet confirmed the trend go up," said Ariston.

In addition, market participants still wait and see attitude, before the announcement of a variety of important policy, setting interest rate by European central banks. In the U.S., Uncle Sam government will announce the unemployment rate and the non-farm payroll (NFP), this weekend.

NFP Analysts expect the data will be more positive this time and grow about 92,000, was better than the previous results of 69 000.

While the unemployment rate is predicted to remain 8.2%. "Therefore I judge this week the price of gold will still be consolidated," said Ariston.

Abraham, senior analyst at Harvest International Futures, assessing the summit euphoria will not last long. Because of the funding required in the form of euro area will make the U.S. dollar regained some strength. "Gold is back down," he said.

Even so, there are some things that maybe you could sustain a rate of increase in gold forward. "If the U.S. economic data released ugly, possibly in the direction of the stimulus will come back and raise investor to buy gold," said Ibrahim.

In the second half, the rate of inflation rose holiday. This condition can hoist the gold price. When inflation rises, investors usually seek gold as a drag reduction of the rate of currency they hold.

Ibrahim assumed gold price of around U.S. $ 1,579.79 to U.S. $ 1604.52, this week. Ariston projections, gold will range from U.S. $ 1,550 to U.S. $ 1,620 per ounce Troi.  ( source www.kontan.co.id, reviewer ; bang mul )