The gold price of Au99.95 kept surging until it closed at 162.41 Yuan per gram last Friday in the Shanghai Gold Exchange, an increase of 8.41 Yuan or 5.46 percent higher than seven days earlier (June 30th).The price of Au99.99 kept jumping by 8.28 Yuan or 5.8 percent and closed at 162.30 Yuan. It hit a record high for six continuous days of increase since December 29, 2005.

The six-day consecutive increase of gold prices resulted from two reason.

One reason is the booming market. The Board of Governors of the Federal Reserve System suggested the suspension of raising interests despite the interest increasing on June 29th, which caused a weak US dollar and boosted the gold price to jump to US$ 637.7 per ounce on international market and 162.5 Yuan on domestic market on July 7th, which is the third consecutive week that the gold price has witnessed a growth.

The other is the active exchange and investment. The gold prices of Au99.95 and Au99.99 surged 8.73 percent and 8.42 percent respectively since June 30th. The sharp increase of gold prices promoted vigorous investment to gold. A total of 12,255.60 kilogram of gold was traded in Shanghai Gold Exchange. last week, up by 11,690.40 kilograms or 565.20 kilograms higher than the previous week (from June 26th to June 30th). The trading per day last week reached 2,451.12 kilograms.

It seems that the gold price on domestic market will surge to a peak of 186.51 Yuan per gram on May 15th because it has seen an increase of 14.03 percent since June 14th, despite being 14.92 percent lower than the 186.51 Yuan on May 15th.

By People's Daily Online