Posts Tagged gold
Gold strides onto record turf again
Posted by Oksana Grebenjuk in Banks on Октябрь 15th, 2009
Gold rallied to a intraday record Tuesday as the dollar slid to a 14-month low and investors remained concerned about the threat of inflation.
December gold was up $6.30 to $1,063 an ounce after climbing to a high of $1,069.70 earlier in the session. That topped the previous intraday record of $1,062.70 an ounce on Oct. 8.
Gold has been on a record-breaking run since prices rose firmly above $1,000 an ounce last month. Many analysts expect the rally to continue into next year.
«We’ve had a weakening dollar today which has definitely been supportive of gold prices,» said Carlos Sanchez, a precious metals analyst at New York-based CPM Group, adding that inflation is «a long-term concern» for many investors.
While prices could «taper off» following the current rally, «overall we still expect prices to head higher next year,» he added.
The market has been supported by speculation that the weak dollar will continue to depreciate as the U.S. budget deficit swells and investors flock to higher yielding currencies. Read the rest of this entry »
Watching those dollar correlations
Posted by Oksana Grebenjuk in Currency, Favourites on Октябрь 12th, 2009
The dollar’s decline — enough so far to trigger intervention from some Asian central banks — should dominate investors’ attention in the coming week if only because of the way it is so closely matched with other assets.
There was a near-perfect negative correlation between the dollar index .DXY, which tracks the greenback against a basket of major currencies, and world stocks as measured by MSCI .MIWD00000PUS in September and early October.
In other words, when the dollar was weak, global stocks nearly always rose, or vice versa.
While this link has eased a bit in the last week, it is still very strong — meaning that dollar-boosting comments such as those on Thursday from Federal Reserve chief Ben Bernanke still have a particularly strong spillover potential.
Bernanke reminded investors that the Fed had the tools at hand to pull back the flood of money it has released into the market — the so-called exit strategy — although it was not likely to act immediately.
Dollar weakness has also been behind the sharp rise in gold prices, which are now at record non-inflation adjusted highs well above $1,000 an ounce. Read the rest of this entry »
Gold stays above $920
Posted by Oksana Grebenjuk in Investing on Июнь 26th, 2009
Gold steadied above $920 on Wednesday, off the previous session’s six-week low as traders awaited the outcome of a key Federal Reserve meeting on interest rates.
The precious metal bounced back from the six-week low of $912.90 as the dollar, the main driver of the current market, was hit by concerns that the Fed would reduce expectations of higher interest rates when it concludes its meeting on Wednesday.
Bullion, which has been sliding since failing to top $1,000 this month, is expected to trade within a narrow range on Wednesday ahead of the conclusion of the Fed’s meeting.
Traders said speculators clearing long positions and receding worries about inflation have pressured gold since it touched a three-month high of $989.80 in early June.
«The gold market’s waiting for material to trade on,» said Koji Suzuki, a senior analyst at SBI Futures Co Ltd. Read the rest of this entry »
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