Gold Climbs on Concerns over European Debt Crisis

2010-11-23 04:49:56

Gold futures on the COMEX Division of the New York Mercantile Exchange inched up on Monday, paring earlier losses, as concerns over the further spread of the eurozone debt crisis spurred traders to return to the precious metal as a safe-haven. But the greenback's recovery has kept a lid on gold. 

Silver also edged higher, but platinum retreated. 

The most active gold contract for December delivery moved up 5. 5 U.S. dollars, or 0.4 percent, to 1,357.8 dollars per ounce. 

Traders attributed the early strength in gold to the weaker dollar after Ireland formally asked for aid from its European partners late Sunday. But as the rally in the euro faded away, gold started to wobble, giving back earlier gains. 

"I think more than anything right now, gold is obviously reacting to dollar/euro spread. Earlier in the session, we had weaker dollar, but as dollar came back strong, gold lost steam, making lows," Mike Daly, gold specialist with PFGBEST in Chicago, told Xinhua. 

Daly mentioned that investors, who have been anticipating the U. S. Federal Reserve to continue to defend the policy of quantitative easing in its FOMC minutes on Tuesday, chose to remain sidelines on Monday. Meanwhile, the fact that China's Central Bank didn't raise interest rate over the weekend as many investors had expected was also considered quite supportive to the bullion. 

Daly added that the fact Ireland is going to accept financial aid from the European Union and the IMF to stem its banking and budget crisis also spurred many savvier European investors to use their euros to buy gold and silver to protect their wealth, as the fragility and uncertainty of the euro region remains prevalent. 

"People are once again using gold as a safe haven investment, just simply because of a lack of confidence in the European Union' s financial regulators as well as financial regulators here," Daly noted.

Silver futures for December delivery rose 28.2 cents, or 1 percent, to 27.461 dollars per ounce. January platinum trimmed 15. 6 dollars, or 0.9 percent, to 1,655.5 dollars per ounce.

Source: http://english.cri.cn/6826/2010/11/23/1821s606435.htm

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$1,500 Gold by Year-End?

Bretton Woods Research, in a note to clients, projected that the gold price could end the year at $1,500 per ounce:

“There is a risk that gold could drift higher now, similar to how it rose following the March 18, 2009 initiation of QE1. If gold were to continue its upward trend since July 27 when it traded at $1163, it could end the year at $1500 with the S&P rallying to 1340 from 1220 today (given their strong correlation). This weak dollar trend is probably at the root of the concerns among many financial wizards that the dollar is headed for another 10+% depreciation during the next two months, or more during the next 6 months.”

“It is difficult to imagine that gold will rally so severely during the next few months, but the risk is certainly high. The Fed has not yet provided the market with a “book-end” that would indicate an unequivocal end to its asset purchases. For example, would the Fed continue its asset purchases if a storm in financial markets occurs similar to May and June 2010? Note, the negative fiscal news from Europe that prompted the global financial market sell-off back then and which caused credit spreads to widen and economic growth to slow again prompted Fed officials, in our opinion, to consider its current quant easing strategy. Furthermore, will foreign countries begin to retaliate against the Fed policy with their own brand of protectionist monetary or fiscal measures? One can clearly see that the Fed’s inflation policy could easily beget new economic problems that would devalue the fiat dollar further.”

Short URL: http://www.goldalert.com/?p=6174

Gold Hits Yet Another Record High

Gold Hits Yet Another Record High                     07/11/2010

After trading down to $1,374 early this morning, the gold price bounced over $22 to its current level of $1,396 per ounce.  Despite the U.S. dollar holding onto most of its gains versus the euro and yen, gold continues to hit fresh all-time highs – hitting a high print of $1,398 per ounce.

Gold mining stocks are following gold higher as the Market Vectors Gold Miners ETF (GDX) also traded to a new record high of $60.85 before giving back a portion of its gains this afternoon.

Short URL: http://www.goldalert.com/?p=6172

‘Dolar seperti tisu tandas’– Dr. M

TUN DR. MAHATHIR MOHAMAD Bekas Perdana Menteri Sumber: Utusan Online: Ekonomi 02/11/10

KUALA LUMPUR 1 Nov. – Penggunaan dinar emas perlu dipertimbangkan oleh semua kerajaan negara dunia kerana kestabilan nilainya berbanding penggunaan mata wang yang tidak menentu naik turunnya.

Bekas Perdana Menteri, Tun Dr. Mahathir Mohamad berkata, langkah menggunakan dinar emas sebagai ganti mata wang utama seperti dolar Amerika Syarikat (AS) dalam pelbagai transaksi juga boleh menghentikan perang mata wang

Katanya, dolar AS kini sudah tidak bernilai seperti mana beberapa tahun dahulu dan penggunaan mata wang kertas juga tiada lagi sehebat sebelum krisis ekonomi pada tahun 1997/98 dan penggunaan dinar emas adalah jalan penyelesaian terbaik.

“Mata wang AS kini boleh dianggap sebagai tisu tandas kerana nilainya semakin menyusut dan tidak berharga berbanding emas yang diterima di semua negara dunia,” katanya.

Beliau berkata demikian selepas menyampaikan ucaptama pada Persidangan Dunia Pertama Mengenai Riba di sini hari ini.

Bagaimanapun, kata bekas Perdana Menteri itu, dinar emas tidak sesuai untuk digunakan dalam urus niaga runcit seperti mana hasrat Kerajaan Kelantan yang mahu menggunakan dinar emas dalam transaksi jual beli.

Mengulas lanjut kata beliau, penyusutan nilai dolar AS pada ketika ini menjadi satu masalah yang cukup besar kepada negara-negara yang menyimpan dan bergantung kepada nilai mata wang itu.

“Jika setiap negara menurunkan nilai mata wangnya, pasti akan ada perang mata wang dan sudah tentu, menyumbang kepada krisis,” katanya.

Beliau tetap berpegang bahawa emas mempunyai nilai kukuh dan merupakan nilai yang lebih baik berbanding mata wang.

“Mata wang tidak ada sokongan kecuali dicari oleh orang ramai. Sekiranya negara-negara mula menurunkan nilai mata wang mereka, akan berlaku kekecohan dalam perdagangan antarabangsa,” kata Dr. Mahathir.

Terdahulu dalam ucaptamanya, negara-negara Islam mesti membangunkan pengurusan sistem kewangan Islam yang berhemat. Ia mesti lebih baik berbanding sistem kewangan konvensional sedia ada, yang mampu menampung kejutan dan tidak dimanipulasi penyangak.

Dengan peserta industri mencari jalan untuk mencergaskan kewangan, sistem kewangan global sendiri amat memerlukan pengurusan yang sempurna, katanya.

“Saya jangka kewangan Islam akan berkembang, tetapi cabarannya ialah pengurusan berhemat dan sistem yang lebih baik. Jangan ikut sistem konvensional yang berurusan dalam segala bidang,” katanya.

Antara gesaan beliau kepada negara Islam ialah menggunakan dinar emas sebagai alternatif, bagi mengurangkan pergantungan terhadap dolar AS sebagai mata wang global untuk perdagangan.