| MOVING CLOSER TO EUROPEAN UNION BANK AGREEMENT European single currency rose yesterday to the highest level in the past 6 months against the dollar as European leaders are trying to come to an agreement on the establishment of mechanisms to protect solve common economic area . At the meeting taking place in Brussels ( Belgium ) , the finance minister European Union is moving closer to the establishment of a banking union . This mechanism is designed to take on the responsibility to rescue the banking system in poor countries , one of the main causes of the financial crisis areas , by transferring the supervision of domestic financial sector it to the European level . |
Meanwhile , forecasts of observers still leaning ability Fed cuts have not been quantitative easing program at its meeting next week while waiting for more bodies to confirm the trend data for U.S. economic recovery is sustainable . Reuters survey released on 9/12 showed most analysts think the Fed will delay cuts to stimulate March next year .
Gold price to the highest level within 3 weeks
Gold prices rose sharply and unexpectedly to the highest level in the past 3 weeks . Experts said that the sharp gains of gold last night as a result of international winter status of investors' short sales , technical buying and a weaker dollar . End of session 10/12 , the world gold price increased 1.7 % to $ 1.263 / ounce .
Investors shorting gold yesterday buying aggressively to realize profitability , risk hedging can occur when a meeting of Fed policy 17-18/12 day is approaching . Meanwhile , technical buying accelerated as gold to replicate the key resistance level of $ 1,250 / ounce .
Gold prices are still at risk of falling back if the Fed policymakers cut package conducting QE at its meeting next week . In contrast , precious metal prices will maintain rising momentum if the Fed's current policy is maintained for a while longer .
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