Sanket
12-02-2009, 01:10 AM
Gold's Rally Hits New Highs (http://online.wsj.com/article/SB10001424052748704107104574571031255756944.html?m od=googlenews_wsj)
DECEMBER 2, 2009
SYDNEY-- Spot gold rallied strongly in Asia Wednesday, setting several record highs in rapid succession to rise 1.6% on the back of fresh money inflows.
After taking a brief breather following news of the Dubai debt crisis, gold's rally has resumed as investors allocated fresh funds at the start of the month, traders said.
At 0539 GMT, spot gold traded at $1,214.80/oz, up $18.80 on the New York close, following a record high of $1,215.70/oz. Gold also breached a new record in euro terms, rising above EUR800/oz for the first time.
Spot platinum and palladium meanwhile both hit 16-month highs at $1,492.50/oz and $386.00/oz, respectively.
Gold's record rise in currencies other than the dollar, its traditional inverse trade, shows broad support for bullion among investors.
Currency factors, mining companies buying back gold forward sales and expectations that more central banks will be buying the metal from the International Monetary Fund were key drivers for gold, Morgan Stanley economist Peter Richardson said.
News that Barrick Gold Corp. has accelerated its gold hedge buyback program to close out all hedges much earlier than its self-imposed deadline of September next year could be read two ways, a Sydney-based trader said. The move to close out hedges is bullish, since it suggests the world's largest gold miner sees further gold price upside, but the conclusion of its buyback program will also remove an important source of market support.
Considering gold's price action in recent days, however, it's clear that bullion's rise is relying on strong key price drivers, including expectations for a weak dollar and upward momentum from news of central bank buying.
This week's U.S. data on non-farm payrolls and unemployment will also likely shape direction for gold as well as base metals.
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Good News for all the people who invested in Gold at the Right Time...:D
Here in India Most of us don't buy paper gold because if ladies in the house comes to know about the Paper Gold they will kill us....:stick:
DECEMBER 2, 2009
SYDNEY-- Spot gold rallied strongly in Asia Wednesday, setting several record highs in rapid succession to rise 1.6% on the back of fresh money inflows.
After taking a brief breather following news of the Dubai debt crisis, gold's rally has resumed as investors allocated fresh funds at the start of the month, traders said.
At 0539 GMT, spot gold traded at $1,214.80/oz, up $18.80 on the New York close, following a record high of $1,215.70/oz. Gold also breached a new record in euro terms, rising above EUR800/oz for the first time.
Spot platinum and palladium meanwhile both hit 16-month highs at $1,492.50/oz and $386.00/oz, respectively.
Gold's record rise in currencies other than the dollar, its traditional inverse trade, shows broad support for bullion among investors.
Currency factors, mining companies buying back gold forward sales and expectations that more central banks will be buying the metal from the International Monetary Fund were key drivers for gold, Morgan Stanley economist Peter Richardson said.
News that Barrick Gold Corp. has accelerated its gold hedge buyback program to close out all hedges much earlier than its self-imposed deadline of September next year could be read two ways, a Sydney-based trader said. The move to close out hedges is bullish, since it suggests the world's largest gold miner sees further gold price upside, but the conclusion of its buyback program will also remove an important source of market support.
Considering gold's price action in recent days, however, it's clear that bullion's rise is relying on strong key price drivers, including expectations for a weak dollar and upward momentum from news of central bank buying.
This week's U.S. data on non-farm payrolls and unemployment will also likely shape direction for gold as well as base metals.
-
Good News for all the people who invested in Gold at the Right Time...:D
Here in India Most of us don't buy paper gold because if ladies in the house comes to know about the Paper Gold they will kill us....:stick: