LONDON – Gold stabilized above $ 1,340 a ounce on Thursday, waning investor interest was offset by a pull-back of the dollar ahead of an important meeting of the G20 and after currency notes from the U.S. Treasury Secretary Tim Geithner.
For gold in the world’s largest exchange-traded fund, the SPDR Gold Trust (GLD: Quote), fell to fourth consecutive opportunity, indicates a decline in investment appetite.
Meanwhile, speculation swirled in financial markets on a possible agreement by the Group of 20 countries to restore the global economy.
Finance and central bank chiefs meet on Friday to discuss a
common path on the management of currency, trade and economic imbalances
prior to a meeting in Seoul next month. [ID: nTOE69K01G]
XAU = Gold hit a high of $ 1,349.05 an ounce before
slipping to $ 1,344.80 by 0924 GMT, down $ 1,343.50 in New
York notional close. Prices rose by nearly 1 percent
Wednesday after reports of the Federal Reserve would buy bonds
to inject money into the U.S. economy.
U.S. gold futures for December delivery rose $ 1.3 GCZ0
at $ 1,345.60 an ounce.
“Despite the renewed dollar weakness, we wrestle
to regain traction on the head. There are a lot
Investors go for gold and probably at this moment,
would probably be a little hesitant, because now everyone
designed to track changes and the result of what can happen
on weekends, “said Ole Hansen, a senior manager at Saxo Bank.
“The trend is still strong due to higher prices and
that’s really the main message remains. ”
SPDR said its holdings down to 1299.177 tons on Oct. 20
1,300.089 tons of Oct. 19 The companies hit a record
1320.436 tons on June 29. [GOL / SPDR]
TILTS DOLLAR LOWER
The dollar compared gains against the euro as investors decided
comments Geithner that the major currencies were approximately
alignment may justify an earlier rally in the U.S.
currency. [USD /]
Gold benefits from dollar weakness, initially as it is
cheaper to non-US buyers, but also the profits of an investor
nervousness due to declines in the dollar.
The strength of the dollar in the last week stripped
more than 3 percent off the gold price since it hit a record
high of around $ 1,387 last week.
Gold also shed nearly 3 percent on Tuesday in its largest
one-day decline since July following the surprise announcement of China
of an interest rate increase.
China’s economic growth eased in the third quarter and inflation
edges just a bit higher, the economy was strong, but
far from overheating. It also suggested a rate rise
This week may be enough for now. [ID: nTOE69K00X]
“I’m still predicting $ 1,400 by the end of the year,” said
Mark Pervan, senior commodities analyst at ANZ in Melbourne,
adding that the physical demand from India and China was expected
support for precious metals.
“The recent tightening of China has taken notice
the market a bit surprised. But (it) does not derail the weak U.S.
U.S. dollar story and probably strong Chinese demand story. ”
The festival season in the top consumer India is underway, with
Dhanteras – the day of the year jewelers register the highest gold
sale – scheduled for early next month. [GOL / IN]
“The market is becoming a little more (conservative) and even
although the long-term sentiment is still bullish, investors will
prefer to take a breather here, while the downside remains good
supported in any case, “said VTB Capital analyst Andrey
Kryuchenkov.
Among other precious metals, silver fell XAG =
about 0.3 percent at $ 23.82 per ounce, while platinum rose XPT =
0.1 percent to $ 1,680 an ounce and palladium XPD = pulled
strength of the rally in base metal complex and pink
nearly 2 percent to $ 595.99 an ounce.
source:reuters
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