GIG-OS ENGLISH: Gold price sharp surge.

Gold price sharp surge.

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Lately gold prices were fluctuating without showing considerable changes. However, the situation changed, and now noticeable rise of gold prices can be observed.

What are the reasons of such surge and what are the future prospects for the precious metal? Read about it in the article!

June 18 became the day when gold prices reached the level of $1202 per ounce. Before this moment gold prices did not show such prominent results, fluctuating around $1175 per ounce with regular ups and downs. This was caused by continuous uncertainty by the Federal reserve, as much as the situation with Greece. What caused such sudden leap?

First, June 18 added more clarity to the situation with Greece. As the time for another paying is approaching again, and the authorities have not succeeded to agree upon the conditions with the creditors yet, gold investors decided to stop waiting and start acting. In case parties will not achieve agreement, Greece's exit from the eurozone becomes highly possible. Some experts assume, this can lead also to the country's exit from the European Union. In this case, currency, stock and debt markets will be destabilized, which will be a strong argument for buying gold.

Also, on June 17 the Fed made a statement about the monetary policy tightening. According to the Fed, this policy will be implemented gradually, which means that in near future gold prices will remain high without being impacted by rising interest rates.

It is worth mentioning that similar growth of the precious metal was observed since 2008 to 2011. During that period yellow metal grew to $1920 per ounce which was also connected to unstable condition of the economy.

The experts assume that summer 2015 will be favorable for gold prices ad they will continue to grow.

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