Gold prices increased in CFD’s Trading Accounts after US dollar fell and demand for metals improved as an as an “alternative and safer” investment; there is a negative correlation between prices of gold and dollar. It is common that, when US dollar has negative trends, traders look for precious and metals (especially gold) to cover their investment risk.
The dollar fell 0.9 percent against a basket of six major currencies on speculation that the European nations will help Greece to fix its budget problems. As we mentioned, concerns that Greece’s deficit may lead to debt defaults drove the dollar to an eight-month high against the euro last week.
Gold futures for April delivery rose $11 dollars, to $1,077.20 an ounce on the New York Mercantile Exchange’s Comex unit. Silver and platinum also rose, and there rumors about a new positive trend for metals.