When the price of gold drops, it usually spurs buying from bargain hunters looking to buy gold at a cheaper price.
(PRWEB UK) 19 April 2013
The price of gold rose by more than 2% on Friday morning to $1,414.30 an ounce as rebound to $1,400 spurred technical buying.
Gold was spurred by physical buyers seeking bargains and has already gained $100 since its previous low.
Gold investors are now awaiting the release of the US CFTC data this evening, which will reveal the latest trading by hedge fund and money managers for more cues.
The drop in prices ignited a spate of buying in gold coins, nuggets and bars, sending premiums for gold bars to multi-month highs in Asia.
A spokesperson from Physical Gold said:
“When the price of gold drops, it usually spurs buying from bargain hunters looking to buy gold at a cheaper price. This buying increases demand and pushes gold prices higher once again.Gold investment still remains a sensible hedge against inflation.”
Physical Gold Ltd is a leading UK gold dealer, helping investors diversify their portfolios with innovative investment solutions. Renowned for their ground breaking products such as the Sipp gold and Gold Accumulation Account, the firm specialise in providing customers with tailored assistance in sourcing the best gold for their personal requirements. Based in London, the team are BNTA accredited and have an unrivalled knowledge of the gold market as well as an exceptional understanding of the general financial markets.