Gold price went up

Gold prices increased on Friday after the publication of May data on
the volume of industrial production in the U.S., as well as an index
of consumer sentiment in the country in June. According to data
exchanges both indexes  turned out to be significantly worse than
expected,.

As of 20:30 Moscow time  August gold futures rose by 0.37% - up to
1625.60 dollars per troy ounce.

As reported earlier on Friday the Fed U.S. manufacturing in the U.S.
fell in May by 0.1%, although most analysts had expected an increase
of 0.1%.

Consumer Sentiment Index, which reflects the confidence of households
in the economy, fell in June, according to the initial assessment, to
74.1 points from 79.3 points in May. Analysts predicted that the
figure falls to only 77.5 points.

Increased demand for gold as a safe asset is connected also to the
publication of the final statement of the IMF mission in Spain,
according to which the country will not be able to perform the task of
reducing the budget deficit to 5.3% of GDP by the end of this year.


The increase in gold prices in 2011 amounted to almost 10%.. During
the first quarter of 2012 the metal prices grew by 6.7%, but in May
the price of gold fell by 6%.

The main factors supporting the value of gold, which is regarded by
investors as a more reliable alternative to volatile currencies and
shares,  are debt crisis in Europe and the acceleration of inflation
in different countries.