As the demand risk among investors increased, the price of gold have weakened even as the dollar devalued following the positive result at the Greek parliament for the austerity measures of the government. Gold prices are expected to increase for the eleventh straight quarter.
Concerns on the debt problems in Greece have been advantageous to the price of gold recently as the economy of Europe would be affected if Greece defaulted on its debt. Gold prices will likely achieve a 5.5 percent increase for the quarter as compared to a 4.8 percent decrease in the price of oil.
Spot gold prices declined by 0.3 percent after an increase in two previous sessions while the price of gold in the US decreased by 0.11 percent. An analyst indicated that gold prices are expected to consolidate as the summer season starts. The current situation in Europe is also expected to influence the price of gold in the near future.
As the dollar weakened compared to a number of currencies, gold prices were expected to go up although it may be possible for the inverse relation of the price of gold with the dollar to be affected at times.
The safe haven appeal of gold is expected to remain following the crisis in Greece although gold prices may stay within a certain range for a while due to the absence of speculation in the market. The second quarter of 2011 has seen the acquisition of gold as noted in the movement in the ETF, which has influenced the price of gold.
Over two million gold ounces went through major ETFS from March to June, which has influenced gold prices although it was a bit lower than the movement for the first quarter of 2011. While the price of gold declined slightly silver prices remained unmoved at around $34 per ounce.
Spot prices of palladium also increased, as gold prices declined, as it went up by 1.1 percent. However it is expected to lose for the second month in a row. On the other hand, palladium remained as the worst performer for the year as it declined by over five percent to this point. Platinum was also lower by around 0.4 percent along with the current price of gold as it reached its lowest level in three months during the week.