Gold Continues To Lanquish Amid Volatility
Gold futures declined 7.1% last week and are down 16.6% in October. The Dow Jones Industrial Average, meanwhile, fell 5.3% for the week and 22.8% in October.
Gold was volatile throughout the third quarter ranging from $741.30 to $977.70 an ounce.
Hedge fund and instituational selling, as well as strength in the US Dollar have contributed to the recent declines in gold prices.
"The fact that gold did not head higher during the current leg of the crisis seems to reflect a combination of the rise in the dollar, deleveraging of commodity positions, sales to meet margin calls, and the unwinding of the long gold, short dollar trade," ... Natalie Dempster, an analyst at the World Gold Council.
Sunday, October 19, 2008
According to the World Gold Council investors spent $2.8 billion on gold investments in the third quarter.
The World Gold Council reports that 145 tons of gold were bought on stock exchanges in the three months to September. Gold held by investors on the exchanges hit 1,000 tons for the first time since the metal was introduced on the US bourse in 2004.
The World Gold Council reports that 145 tons of gold were bought on stock exchanges in the three months to September. Gold held by investors on the exchanges hit 1,000 tons for the first time since the metal was introduced on the US bourse in 2004.
Thursday, October 16, 2008
OPEC devising gold backed currency?
The recent dramatic drop in oil prices has prompted OPEC to move up the date of its meeting from November 18 to October 24. The meeting is set to focus on "the global financial crisis, the world economic situation and the impacts on the oil market".
OPEC has been feeling the impact and ramifications of fluctuations in the US Dollar. Oil prices are quoted and traded in US Dollars and therefore the inflation/deflation cycles have created discontent among many OPEC members.
Could this be the correct time for OPEC nations to pursue oil being priced in a gold backed currency?
The recent dramatic drop in oil prices has prompted OPEC to move up the date of its meeting from November 18 to October 24. The meeting is set to focus on "the global financial crisis, the world economic situation and the impacts on the oil market".
OPEC has been feeling the impact and ramifications of fluctuations in the US Dollar. Oil prices are quoted and traded in US Dollars and therefore the inflation/deflation cycles have created discontent among many OPEC members.
Could this be the correct time for OPEC nations to pursue oil being priced in a gold backed currency?
Monday, October 13, 2008
Dollar Correction Leading To Stronger Gold Prices
In European trading on Monday the US Dollar is trading down and boosting gold prices.
Spot gold was at $862.25/865.25 an ounce at 0911 GMT, up from $847.40 in late New York trade on Friday.
Money continues to flow into gold ETFs...
The SPDR Gold Trust, the world's largest gold-backed ETF, announced on Friday that its holdings rose to a record 770.64 tonnes last week.
The SPDR Gold Trust (NYSE GLD) has expanded its holdings by 26% since the bankruptcy announcement by Lehman Brothers.
In European trading on Monday the US Dollar is trading down and boosting gold prices.
Spot gold was at $862.25/865.25 an ounce at 0911 GMT, up from $847.40 in late New York trade on Friday.
Money continues to flow into gold ETFs...
The SPDR Gold Trust, the world's largest gold-backed ETF, announced on Friday that its holdings rose to a record 770.64 tonnes last week.
The SPDR Gold Trust (NYSE GLD) has expanded its holdings by 26% since the bankruptcy announcement by Lehman Brothers.
Saturday, October 11, 2008
Gold prices retreated from early gains to post a loss on Friday. Gold for December delivery fell $27.50 (3.1 percent) to settle at $859 an ounce on the New York Mercantile Exchange. Gold hit an intra day low of $829.
Shares of StreetTracks Gold ETF (NYSE GLD) once again failed to close above the 200 day moving average of $88.30 after hitting an intra day high of $90.72.
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