Enchantment of the gold price has not faded. This year analysts expect gold prices likely through 1300 U.S. dollars per troy ounce. The investors would transfer the funds from currency into precious metals.

Analyst with Standard Bank Plc, Bruce Ikemizu, rate, euro currency and the United States dollar might lose its appeal. Therefore, economic conditions in developed countries are still below the emerging market countries like China.

Currently there are no investment instruments that are fitted to replace the U.S. dollar and euro. Thus, according Ikemizu, the choice is gold.

“The U.S. no longer dominates the world economy. Now that drives the global economy is the growth of developing countries,” said Ikemizu in Japan, as quoted by Bloomberg, last week.

In trading on the New York Mercantile Exchange Friday (6/18/2010), the gold price in August delivery closed down 9.60 dollars scoop on 1258.30 dollars per ounce. This is the highest position in history. Even in the daily trading price of this precious metal touched a record high of 1263.70 U.S. dollars daily.

The current price for gold delivery, closed at 1257.20 dollars per troy ounce.

The stock market is the United States (U.S.) re-experiencing reinforcement. However, investors seem selective in choosing a particular stock sector.

S & P 500 increased by 9.4 percent so far in September, which this month is historically the worst month for stock markets. Meanwhile, with the remaining two days remaining in September, the Dow Jones rose 8.4 percent so far.

“When the moon is a lot of surprises like this, investors tend to decrease the interest in stocks, they generally choose to save cash or bond funds until the quarter ends. And when this quarter ends, new investors tend to return to the stock market, and it causes aggressiveness in the market, “said U.S. market strategist at Cantor Fitzgerald & Co. Marc Pado like quoted from Reuters, in San Francisco on Wednesday (29/09/2010).

Sectors related to the passage of economic growth appears superior to other sectors. Philadelphia semiconductor index rose 1.7 percent on the day of trade rose 13.8 percent for this month. The small-cap Russell 2000 rose 1.1 percent. Among S & P 500 sectors, the index of consumer discretionary (GSPD.) rose 0.8 percent.

Furthermore, increasing energy and commodity stocks, gold in the spot market price immediately jumped to a new record at USD1.310, 10 per ounce.

In trading on Tuesday (09/28/2010) local time, the Dow Jones rose 46.10 points or 0.43 percent to 10858.14. Standard & Poor’s index rose 5.54 points, or 0.49 percent, to 1147.70, as well as the Nasdaq Composite Index rose 9.82 points or 0.41 percent to 2379.59.

In the show Andrew Marr Show on BBC 1 television station, British Transport Minister Philip Hammond reveals UK Treasury has ordered the majority of the ministers to make deficit reduction scenario of 25% and 40% for four years. Coalition of Conservative and Liberal Democratic Party central England proposes cutting spending and raising taxes by the amount of 113 billion pounds (U.S. $ 172 billion) to reduce the budget deficit which is currently 11% of GDP.

“We’re not going to cut 25% uniformly in every department. Indeed there is no department that should reduce spending fully 40%, but some departments may need to cut a little larger than 25%, “explained Hammond.

Meanwhile, the Commerce Department was ordered to explain in detail the mechanism of cutting spending to 11.5 billion pounds before 2015 from 19.2 billion pounds in fiscal year 2010.

Education Minister Michael Gove and Defense Minister Liam Fox have also been asked to prepare a spending reduction proposals amounting to 10% and 20%. Department of the gain exclusion is the Department of Health and Department for International Development.

“We are committed to reducing the large budget deficits to lower interest rates in the long term, protecting jobs and maintaining quality public services are the keys,” British Finance Minister George Osborne said in a statement in an email.

Internal spokesperson Labor Party Alan Johnson said the idea of cutting spending without compromising large-scale public service is just fantasy. UK Fiscal Policy Office last week estimated that 610 000 jobs could be lost within five years if implemented tightening spending.