Gold, little changed in Asian trading, may advance as investors expect more cash injections from policy makers to boost the U.S. and European economies will enhance the appeal of precious metals as an alternative to currencies. Silver traded near a 30-year high.
Gold for immediate delivery traded at $1,421.82 an ounce at 1:30 p.m. in Singapore after earlier losing as much as 0.4 percent. The metal climbed to an all-time high of $1,427.55 yesterday and rose to a record in euros today. The February- delivery contract in New York gained 0.5 percent to $1,422.80 an ounce, after reaching a record $1,429.40 yesterday.
“Tactical investors have turned positive on gold and silver and increased their long exposure,” Stefan Graber, an analyst at Credit Suisse, wrote today in a report. “Positioning does not look excessive, suggesting that the sector could attract further near-term flows.”
Gold has jumped almost 30 percent this year, set for a 10th annual increase, as central banks and governments pumped trillions of dollars into their economies to bolster growth. Concerns about the U.S. economy and the European debt crisis fueled speculation that more stimulus measures are on the way, weakening the dollar and making gold and other metals cheaper for holders of other currencies.
Federal Reserve Chairman Ben S. Bernanke said Dec. 5 the central bank may boost Treasury purchases beyond the $600 billion announced last month to spur growth. European officials were split on containing the sovereign-debt crisis after Ireland became the second euro-zone nation to seek a bailout.
Debt Crisis
Germany rejected calls to increase the European Union’s 750 billion-euro ($1 trillion) aid fund or introduce joint bond sales, a sign the country won’t bear more costs to stamp out the debt crisis. Spot gold climbed to a record 1,072.133 euros an ounce today
“The market is all about the European debt crisis and a third round of quantitative easing in the U.S.,” Wallace Ng, executive director of commodities at ABN Amro Bank NV in Hong Kng, said today by phone. “Gold is now driven by investment demand” and purchases from jewelers and physical users particularly from India has been muted, he said.
Ng forecast investors would sell the metal at near-record levels, and pegged gold’s support for the week at $1,400.
The U.S. Dollar Index, which tracks the greenback against six major counterparts including the euro, dropped as much as 0.4 percent today. Gold usually moves inversely to the U.S. currency.
Silver for immediate delivery dropped 0.2 percent to $30.10. The metal climbed to $30.2663 yesterday, the highest since 1980. Spot metal has advanced 78 percent this year, outperforming gold.
Palladium climbed 0.2 percent to $758.85 an ounce and platinum was little changed at $1,718.20 an ounce.
Read More
http://www.bloomberg.com/news/2010-12-07/gold-falls-as-gain-to-record-prompts-sales-silver-drops-from-30-year-high.html
Gold for immediate delivery traded at $1,421.82 an ounce at 1:30 p.m. in Singapore after earlier losing as much as 0.4 percent. The metal climbed to an all-time high of $1,427.55 yesterday and rose to a record in euros today. The February- delivery contract in New York gained 0.5 percent to $1,422.80 an ounce, after reaching a record $1,429.40 yesterday.
“Tactical investors have turned positive on gold and silver and increased their long exposure,” Stefan Graber, an analyst at Credit Suisse, wrote today in a report. “Positioning does not look excessive, suggesting that the sector could attract further near-term flows.”
Gold has jumped almost 30 percent this year, set for a 10th annual increase, as central banks and governments pumped trillions of dollars into their economies to bolster growth. Concerns about the U.S. economy and the European debt crisis fueled speculation that more stimulus measures are on the way, weakening the dollar and making gold and other metals cheaper for holders of other currencies.
Federal Reserve Chairman Ben S. Bernanke said Dec. 5 the central bank may boost Treasury purchases beyond the $600 billion announced last month to spur growth. European officials were split on containing the sovereign-debt crisis after Ireland became the second euro-zone nation to seek a bailout.
Debt Crisis
Germany rejected calls to increase the European Union’s 750 billion-euro ($1 trillion) aid fund or introduce joint bond sales, a sign the country won’t bear more costs to stamp out the debt crisis. Spot gold climbed to a record 1,072.133 euros an ounce today
“The market is all about the European debt crisis and a third round of quantitative easing in the U.S.,” Wallace Ng, executive director of commodities at ABN Amro Bank NV in Hong Kng, said today by phone. “Gold is now driven by investment demand” and purchases from jewelers and physical users particularly from India has been muted, he said.
Ng forecast investors would sell the metal at near-record levels, and pegged gold’s support for the week at $1,400.
The U.S. Dollar Index, which tracks the greenback against six major counterparts including the euro, dropped as much as 0.4 percent today. Gold usually moves inversely to the U.S. currency.
Silver for immediate delivery dropped 0.2 percent to $30.10. The metal climbed to $30.2663 yesterday, the highest since 1980. Spot metal has advanced 78 percent this year, outperforming gold.
Palladium climbed 0.2 percent to $758.85 an ounce and platinum was little changed at $1,718.20 an ounce.
Read More
http://www.bloomberg.com/news/2010-12-07/gold-falls-as-gain-to-record-prompts-sales-silver-drops-from-30-year-high.html
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