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niuyear
Supreme |
29-Apr-2011 16:56
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SILVER and GOLD good hedge against weak US$. |
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bsiong
Supreme |
29-Apr-2011 09:04
Yells: "The Greatest Wealth is Health" |
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SINGAPORE, April 29 (Reuters) - Silver and gold were within sight of |
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bsiong
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29-Apr-2011 09:02
Yells: "The Greatest Wealth is Health" |
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Closing Gold & Silver Market Report – 4/28/2011April 28, 2011GOLD PRICES EXTEND RECORD BREAKING RALLY – Gold is an insurance policy and today was a day that highlighted the need for insurance. The US dollar fell even further as it was given no support by yesterday's Fed announcement. The US jobless claims were supposed to get better, (according to the experts),but they went up and not down. The first quarter GNP was supposed to be 2.0% (according to the experts), but it came in at 1.8%. The previous quarter it was 3.1%. Fed Chairman Bernanke assures us these are transitory issues. “Bernanke basically said, ‘hey, we are going to let the U.S. dollar just get crushed,’” said Michael K. Smith, with T & K Futures and Options Inc. in Florida. Now throw in the death toll from yesterday’s tornado outbreak is up to 284, and it further highlights the need for insurance. In 2010, Central Banks became net buyers of gold for the first time ever. In 2011, Central banks are still not selling and Russia and Bolivia just purchased more. Investors are watching the China Central bank closely because they have given signals they might be sellers of dollars to purchase more gold. Their current gold reserves are on 1.7%. while most western countries are over 60%. Although China is only at 1.7% of reserves this still puts them in the top five for total gold owned. If they just double their position, it will affect gold prices. At 4PM (CT) the APMEX precious metal prices were:
================================================================================================ Diversify your portfolio. |
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bsiong
Supreme |
28-Apr-2011 23:47
Yells: "The Greatest Wealth is Health" |
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Morning Gold & Silver Market Report- April 28,2011April 28, 2011GOLD IS RISING AS THE DOLLAR IS SINKING- Yesterday’s Fed decision to stay the course has put added pressure on the US dollar. Chairman Bernanke stated that he considers inflationary pressures transitory and the lower than expected first quarter economic growth, transitory. He even might have left the door open for another round of monetary easing, once QE2 has expired. Gold and silver prices immediately shot up as a bet against the wisdom of the Fed policy. The stock market went up capitalizing on continued easy money. The unprecedented spring tornado outbreak continued yesterday, as multiple tornadoes struck in Alabama. The current death toll is at 176. It is not only economic and geopolitical uncertainties that can drive people to safe haven investments such as gold, the uncertainty of natural disasters can as well. Stock futures are now falling, as the weekly jobless claims report fell more than expected. We lost 25,000 jobs. Economists surveyed by Reuters had expected claims to fall to 392,000, but they rose to 429,000. At 8AM (CT) the APMEX precious metal prices were:
================================================================================================ Diversify your portfolio. |
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bsiong
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28-Apr-2011 23:45
Yells: "The Greatest Wealth is Health" |
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April 28, 2011 Bernanke Has Officially Killed the Dollar Yesterday, Bernanke staged a " conference" answering " questions" from " journalists." It's striking that the man with the most power in the world would be handled with kid gloves. After all, if he's in charge of directing the world's reserve currency, surely he could answer a few hardball questions about his insane policies. However, instead of holding this miscreant accountable for his monetary madness, the " journalists" let him prattle on with his meaningless drivel. The markets, on the other hand, read through his BS. Soon after the conference the US Dollar collapsed to a three year low. At this point, there is only one line of support left for the US Dollar. That's one line, standing between us and the abyss of all-time lows: a point at which there is no support left. Gold and Silver also bounced back after having been slammed by various suppression schemes last week. All those, " the rally is over," folks got shanked in the ribs as Gold hit a new all-time high and Silver retraced almost all of its former losses in a few hours. In other words, the great inflationary collapse of the US Dollar is in full effect. Again, there is only one line of support left for the greenback. If Bernanke was going to do ANYTHING to support the Dollar, yesterday was the day for him to have done it. Instead, we're going to enter a mega-inflationary collapse. Indeed, at the current pace we're going the US Dollar will be collapsing within one month. This could change, but we'd need another 2008 type event to pull the US Dollar back from the brink. And judging from stocks and inflation hedges' performance today, that ain't happening. So if you are not already preparing for mega-inflation, you need to get moving now. Because time is running out. |
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bsiong
Supreme |
28-Apr-2011 19:50
Yells: "The Greatest Wealth is Health" |
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 ====================================== |
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bsiong
Supreme |
28-Apr-2011 19:48
Yells: "The Greatest Wealth is Health" |
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* Spot gold hits record at $1,534.30 * iShares Silver Trust holdings fall by 1.8 percent * Coming up: U.S. Q1 GDP preliminary 1230 GMT By Rebekah Curtis LONDON, April 28 (Reuters) - Gold hit record highs on Thursday as the dollar's three-year low against a basket of major currencies attracted non-U.S. investors, after the United States signalled it would retain accommodative monetary policy. Spot gold XAU= ascended to a lifetime high of $1,534.30 an ounce, breaking records for the second straight session. It traded at $1,530.54 an ounce at 1116 GMT, up from $1,526.40 late in New York on Wednesday. U.S. gold futures GCcv1 also hit an all-time high at $1,535.1 an ounce, and trimmed gains to $1,531. The dollar index .DXY, a measure of the greenback's strength against a basket of major currencies, dipped to a three-year low after the U.S. Federal Reserve signalled no rush to reverse low interest rates in order to support economic recovery. [USD/] " Everything is dollar-related and safe-haven buying," said MKS Finance head of trading Afshin Nabavi. " The Fed decision was not really a surprise, nothing has changed, but the tone of the statement from Bernanke left the impression that it is going to be a while before any rate hikes will be considered." The weakening dollar has been a key driver behind gold's rally in recent weeks, alongside concerns over the ongoing crisis in the Middle East and North Africa region, sovereign debt problems in euro zone and rising inflation worldwide. PHYSICAL BUYING Physical gold buying was seen active in Asia while scrap selling was limited, as market participants remained bullish even after gold struck record highs in nine out of the past ten sessions, dealers said. Spot silver XAG=, which has rocketed more than 50 percent so far this year, rose to $48.56 an ounce against $47.76 an ounce late in New York on Wednesday. U.S. silver futures SIcv1 jumped as high as $48.75 in early trade, following a climb of as much as 7 percent on Wednesday. They were later at $48.61. As silver prices advanced, holdings in the iShares Silver
Trust (SLV), the world's largest silver-backed exchange-traded
fund, dipped 1.8 percent to 11,053.20 by April 27 from the
previous session.Gold and silver may both see more upside, but the risk of a pullback in silver is larger than in gold due to the more speculative nature of the silver market, traders said. Platinum was at $1,827 an ounce from $1,819.45 and palladium XPD= was at $767.47 an ounce from$ 763.45 " The market has been pushed higher by prospects of a weaker dollar, inflation concerns and all the debt problems," said Robin Bhar, an analyst at Credit Agricole, adding gold looked set to touch new record highs soon. ====================================== |
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bsiong
Supreme |
28-Apr-2011 09:21
Yells: "The Greatest Wealth is Health" |
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bsiong
Supreme |
28-Apr-2011 09:16
Yells: "The Greatest Wealth is Health" |
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Closing Gold & Silver Market Report – 4/27/2011April 27, 2011BERNANKE SPEAKS PRECIOUS METALS SOAR – The much anticipated Fed announcement came out today and they are continuing with their stimulus policy because they feel the economic growth is slowing and inflation is not a concern right now. The Fed 2011 economic growth estimate was cut from 3.4% – 3.9% to 3.1% – 3.3%. " The markdown of growth in 2011, in particular, reflects the somewhat slower than anticipated pace of growth in the first quarter," Bernanke said in prepared remarks before he took reporter questions. This announcement is expected to put even more downward pressure on an already falling US dollar. There are mixed opinions as to whether the Fed shut the door on a possible QE3 or left it slightly ajar. The statement that gives a clue to yet a third round of quantitative easing is that his group will “regularly review the size and composition of its securities holdings in light of incoming information and is prepared to adjust those holdings as needed to best foster maximum employment and price stability.” From this writer’s perspective, they certainly appear to have left themselves some wiggle room. Long-term bond prices fell after Mr. Bernanke’s speech…the US Dollar fell to an August 2008 low… gold and precious metals go up. At 4PM (CT) the APMEX precious metal prices were:
====================================== Diversify your portfolio. |
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bsiong
Supreme |
28-Apr-2011 00:10
Yells: "The Greatest Wealth is Health" |
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Watch  ====================================== Diversify your portfolio. |
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bsiong
Supreme |
27-Apr-2011 23:48
Yells: "The Greatest Wealth is Health" |
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Morning Gold & Silver Market Report – 4/27/2011April 27, 2011INVESTORS AWAIT FED MEETING ANNOUNCEMENT – The US dollar drops again to nearly a three year low against a basket of six other major currencies. Gold and silver investors will be closely monitoring the Fed announcement today, at 11:30 AM (ET) and the first ever post-meeting press conference by a Fed Chairman. Mr. Bernanke will conduct this conference at 2:30PM (ET). Will the Fed continue down the road of easy money or will they began to signal inflation fighting measures? Easy monetary policies have driven the price of gold and silver up. “A lot of gold buyers will be waiting for signals from the Fed,” said Bernard Dahdah, a London-based analyst at Natixis Commodity Markets Ltd. Any indications “on currency and interest rates could highly affect the price of gold. For the next weeks we view gold as being driven by the dollar.” The S& P cut Japan’s credit rating outlook from neutral to negative, as a result of the recent earthquakes and tsunami. A similar move was announced just weeks ago for the US credit rating outlook. Japan had already been struggling to come up with a deficit reduction plan before the earthquakes struck. Today’s downgrade is recognition that this task has become even more daunting. At 8 AM (CT) the APMEX precious metal prices were:
====================================== Diversify your portfolio. |
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bsiong
Supreme |
27-Apr-2011 09:11
Yells: "The Greatest Wealth is Health" |
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Closing Gold & Silver Market Report – 4/26/2011April 26, 2011GOLD – THE PERFECT ANTI-INVESTMENT – The University of Texas made an extraordinary investment decision on April 15th, when they not only moved 5% of their assets into gold they actually bought gold and not an ETF. This second-largest academic endowment in the US, decided that they needed insurance against inflation, as a result of current fiscal and monetary policies. “The role gold plays in our portfolio is as a hedge against currencies. The concern is that we have excess monetary and fiscal stimulus,” Bruce Zimmerman, chief executive officer of The University of Texas Investment Management Company told CNBC television. Mr.Zimmerman also described gold as an anti-currency, being it is in limited supply and you cannot just print some more. Gold will not only protect you against inflation and currency risk, but market failure as well. The US dollar slipped to near 2 1/2 year lows today, on expectations that the Fed will give no indication on Wednesday, when they might end their loose monetary policies. " I don't think [the Fed is] ready, but they are preparing the groundwork" for an eventual tightening, said Joseph Trevisani, chief market analyst at FX Solutions. If the Fed continues to downplay inflation, it is likely the value of the dollar will continue to decline. At 4PM (CT) the APMEX precious metal prices were:
====================================== Diversify your portfolio. // |
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bsiong
Supreme |
27-Apr-2011 00:09
Yells: "The Greatest Wealth is Health" |
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Morning Gold & Silver Market Report – 4/26/2011April 26, 2011HOME PRICES DROP AGAIN – The Case-Shiller report came out this morning and home prices fell for the 8th straight month in February. Although this drop exceeded expectations by 0.3%, it is still indicative of a housing market struggling to recover. Gold and silver are recovering this morning from earlier losses in the Asian markets. The London market was closed on Monday, so trading volumes were thin. The opening of the London market today should provide indications as to the short term direction of gold and silver. Greece’s budget deficit went up 143% more than projected. The culprit is lower-than-expected government revenues as a result of a recession, that is worse than expected. Greek government bonds will come under added pressure and no doubt fuel rumors that debt re-structuring will be needed. Syria has stepped up violence against government protestors even after a weekend where 80 protestors were killed. The Syrian government appears to prefer force rather than reform. In the US, the market is anxiously awaiting Wednesday’s Fed announcement and the first ever post-announcement press conference by a Fed Chairman.The Fed’s dilemma is whether to risk the economic recovery by initiating inflation fighting measures, or keep on the current path. The futures markets are up, which indicates a bet on the continuation on the current path. At 8AM (CT) the APMEX precious metal prices were:
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bsiong
Supreme |
26-Apr-2011 17:44
Yells: "The Greatest Wealth is Health" |
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LONDON, April 26 (Reuters) - Silver fell nearly 5 percent on Tuesday, snapping a rally in previous sessions that had carried it close to a record high, as option traders sold back metal to cover risks ahead of options expiry later in the day. PRICES * Spot gold XAU= was bid at $1503.31 an ounce at 0645 GMT from $1,508.45 late in New York on Monday. * Silver XAG= was at $45.94 from $46.90. * Platinum XPT= at $1,805.74 from $1,819.30. * Palladium XPD= at $757.80 from $757.80 DATA/EVENTS * U.S. consumer confidence, April - 1400 GMT * Redbook weekly U.S. retail sales - 1255 GMT * U.S. housing building permits revisions for March * Fed's Federal Open Market Committee (FOMC) holds two-day meeting on interest rates (to April 27, 2011) * SEC, CFTC hold meeting on implementation of Dodd-Frank for swaps and security-based swaps (to April 27). MARKET NEWS * Silver fell and Asian shares pulled back from recent three-year highs in a bout of profit-taking before the Federal Reserve meeting this week where investors are seeking clues on when it plans to begin exiting its ultra-easy monetary policy. * The euro slipped after European Central Bank Governor Jean-Claude Trichet said he shares the view that a strong dollar is in the interest of the United States, a comment taken by some market players as showing frustration over the dollar's relentless fall and also an attempt to talk up the currency. * U.S. crude futures fell more than $1 as investors reduced risk ahead of a meeting of the U.S. Federal Reserve and after Saudi Aramco's chief executive said the kingdom was not comfortable with current oil prices. * European shares are set to fall tracking Wall Street and in Asia, as investors take a cautious stance ahead of the start of the Federal Reserve meeting. * In the lightest volume session of the year, U.S. stocks fell on Monday after a lowered outlook from Kimberly-Clark increased concerns about higher commodity costs squeezing profits in coming quarters. FUNDAMENTALS * MMTC, India's largest bullion importer, will almost double its silver purchases this fiscal year to 1,500 tonnes despite soaring prices as buying continues from investors expecting stronger returns than gold. * Options activity in a silver-backed exchange-traded fund soared on Monday as speculators attempted to jump on the " silver bandwagon" following a surge that brought the price of silver within a hair of its all-time record. * China's Minmetals Resources (1208.HK) bowed out of the battle for copper miner Equinox Minerals (EQN.TO), saying Barrick Gold Corp's (ABX.TO) C$7.3 billion ($7.68 billion) bid was too rich. TECHNICALS * Gold support at $1,489 an ounce, resistance at $1,539 an ounce and 14-day RSI at 71.87. * Platinum support at $1,789 an ounce, resistance at $1,839 and 14-day RSI at 50.060. * Silver support at $44.10 an ounce, resistance at $48.65 and 14-day RSI at 78.82. (Editing by Jason Neely) |
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bsiong
Supreme |
26-Apr-2011 10:09
Yells: "The Greatest Wealth is Health" |
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SINGAPORE, April 26 (Reuters) - The stunning rally in silver fizzled on Tuesday and gold edged lower after a seven-day record-setting run, as market participants return from the long Easter weekend and focus on a U.S. Federal Reserve policy meeting starting later in the day. FUNDAMENTALS * Spot silver fell by 0.8 percent to $46.53 an ounce by 0036 GMT, after surging to $49.31 in the previous session, just below the life-time high of $49.48 hit on Jan. 18, 1980, according to Reuters data . * U.S. silver futures SIcv1 lost 1.3 percent to $46.53. It jumped as much as 8 percent to $49.82 on Monday, a hair off the record of $50.35 reached in 1980. * CME on Monday raised COMEX 5000 Silver < 0#SI:> maintenance margins for speculators by 9.2 percent to $9,500 per contract from $8,700 effective Tuesday, April 26. [ID:nL3E7FP2EW] * Spot gold edged down 0.2 percent to $1,505.06, off the record high of $1,518.10 set in the previous session. * U.S. gold futures GCv1 also eased from its all-time peak of $1,519.2, to $1,505.60. * Holdings in the world's largest physically backed exchange-traded fund, iShares Silver Trust , rallied more than 2 percent to a record high of 11,390.06 tonnes by April 25. MARKET NEWS * In the lightest volume session of the year, U.S. stocks fell on Monday after a lowered outlook from Kimberly-Clark increased concerns about higher commodity costs squeezing profits in coming quarters. * The dollar index inched up, but the greenback is seen to remain pressured if the upcoming Fed meeting shows no sign of changing its easy monetary policy. |
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bsiong
Supreme |
26-Apr-2011 10:06
Yells: "The Greatest Wealth is Health" |
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Closing Gold & Silver Market Report –4/25/2011April 25, 2011IMF DROPS A BOMBSHELL ON THE US – The International Monetary Fund dropped a bombshell, that went largely unnoticed. They have now set a date, 2016, when the economy of China will officially pass that of the US. This is only five years from now! Many questions will need to be answered, regarding how this will effect the US dollar and the US Treasuries, when they no longer enjoy the privileges of being Number One. INFLATION CONCERNS TROUBLE WALL ST – in a day of light trading, the stock market declined on concerns that earnings reports were beginning to become affected by rising commodity prices. Kimberly-Clark for one, reduced their full-year outlook due to the costs of pulp and other goods rising by almost twice as much. At 4PM (CT) the APMEX precious metal prices were:
//---- Diversify your portfolio. To reach financially freedom, you need to invest. Invest in land and get a double return in 4 to 5 years. It is just about 91 shares of GLD counter for 1 unit of land. Where? http://www.youtube.com/watch?v=kMOvjDJeOuQ Plan your future now and be financially independence. How? Message(Contact) me here for details. |
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bsiong
Supreme |
25-Apr-2011 17:54
Yells: "The Greatest Wealth is Health" |
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* US silver futures hit 31-year high at $49.82/oz * Spot gold rises to record of $1,517.71/oz * Coming up: U.S. NAHB housing market index 1400 GMT By Rujun Shen SINGAPORE, April 25 (Reuters) - Spot silver surged more than 5 percent to above $49 ounce on Monday, buoyed by a weak dollar and strong physical demand in Asia that also propelled gold to a record high for a seventh consecutive session. Spot silver hit a 31-year high of $49.31 an ounce, before easing to $49.16 by 0854 GMT. The level was 17 cents off a 1980 record high, according to Reuters data. It was heading for its biggest daily gain in five months. " Everyone is buying," said a Hong Kong-based dealer. " There is stop-loss buying, as well as a good buying interest from China." The dollar index languished around a three-year low on Monday, with investors expecting further weakness on concerns about the size of the U.S. budget deficit and the expectation that interest rates in the world's largest economy would remain low. Concerns about rising inflation in many parts of the world have also made precious metals attractive to investors. Ongoing unrest in the Middle East and North Africa, and sovereign debt crisis in the euro zone, helped enhance the lure of precious metals. Spot gold hit a record high of $1,518.10 an ounce, before easing to $1,517.80, up nearly 1 percent. Precious metals futures contracts rallied along with spot prices. U.S. silver futures SIcv1 jumped 8.2 percent to $49.82 an ounce in unusually large trading volume, just about 50 cents off its all-time peak of $50.35 hit on Jan. 18, 1980. The contract eased to $49.17 an ounce on Monday. The U.S. contract was catching up with moves on physical silver on Friday, when a holiday closed the futures market. U.S. gold futures GCcv1 also rose to a record high, at $1,518.6. Spot silver broke through resistance at $48 per ounce. That triggered some automatic buying, analysts said. " As the market edged higher, a series of stop-loss buying was triggered, especially after silver rose above $48," said Yuichi Ikemizu, Tokyo branch manager of Standard Bank. Technical analysis showed silver could be headed towards $54.78 per ounce, said Wang Tao, a Reuters market analyst. Buying interest in physical silver has jumped in markets from China, India to the Middle East. " Everyone wants a piece of silver, right from a cab driver to a professional," said Harshad Ajmera, proprietor of Kolkata-based JJ Gold House in India, " It looks like the whole of one billion population is chasing silver." For retail consumers, silver at near $50 an ounce is still a lot cheaper than $1,500 gold, but for investors, silver is more expensive relative to gold than it has been for more than three decades. Silver prices have climbed nearly 60 percent so far this year, after jumping more than 80 percent in 2010. Silver's rally this year has outpaced gold's 7 percent rise and the 10-percent gain in the 19-commodity Reuters-Jefferies CRB index . Despite silver's rise relative to gold, it was still attracting investors. Holdings in the world's largest silver-backed exchange-traded fund, iShares Silver Trust , have risen by 2.4 percent so far this year, compared to a 4 percent decline in the holdings of SPDR Gold Trust, the world's top gold ETF. " The world is in love with the stuff right now. Silver ETFs are doing a roaring trade and silver bullion is being snapped up by retail investors," said a trader at an international bank in Singapore. " But I would caution against chasing prices right now. There is way too much fizz in the market right now." |
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bsiong
Supreme |
24-Apr-2011 17:12
Yells: "The Greatest Wealth is Health" |
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Gold Outlook Bullish on Weaker Dollar, Continued Geopolitical Concerns
Fundamental Forecast for Gold: Bullish
//= = = = Diversify your portfolio.Invest in land and get a double return in 4 to 5 years. Where? http://www.youtube.com/watch?v=kMOvjDJeOuQ Plan your future now and be financially independence. How? Message(Contact) me here for details. |
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bsiong
Supreme |
24-Apr-2011 17:10
Yells: "The Greatest Wealth is Health" |
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Gold Outlook Bullish on Weaker Dollar, Continued Geopolitical Concerns 22 April 2011 21:36 GMT After weeks of range trading and congestion, Gold has continued its march higher and higher, setting all-time highs everyday this week. Gold gained every day this week, finally settling at $1507.04 on Friday, slightly off of its high from the day and the week, at $1512.68, marking a 1.4 percent gain overall for the week. Still, Friday’s close represents the highest such level bullion has closed at all-time.While the geopolitical tensions in the Middle East and North Africa region seemingly looming in the background, the markets turned their collective eye this week towards inflationary pressures, and a weaker U.S. Dollar following the S& P’s announcement on Monday that it would put the United States AAA rating on ‘negative’ watch. Still, Friday’s close represents the highest such level bullion has closed at all-time. The week ahead could provide more of the same as a few key events point towards further inflation concerns as well as continued Greenback weakness.
Wednesday is shaping up to be the most important day of the week, on a fundamental basis, for commodities, given the two consumer price index releases in the Asian and European sessions, followed by the historically market moving FOMC interest rate decision midway through the North American session. Price pressures continue to rise in Europe’s largest economy, and with European Central Bank President Jean-Claude Trichet noting that the rate hike on April 7 might not necessarily be the first in a series of rate hikes, it is likely that further evidence of price pressures in Germany could send investors fleeing towards bullion and other precious metals as a hedge against inflation. The most important event of the week, however, comes later in the North American session, when the FOMC is expected to maintain the key interest rate at 0.25 percent, as it continues its $600 billion stimulus plan, dubbed ‘quantitative easing 2.’ While a U.S. Dollar rally on the heels of hawkish commentary by Federal Reserve Chairman Ben Bernanke would certainly stunt gold’s parabolic climb, the markets view a shift in FOMC policy unlikely to occur at this meeting, with the Overnight Index Swaps showing a 0.0 percent chance of a 25-bps rate hike at the meeting.
On a technical basis, bullion continues to hold above its 20-SMA, and the 50-SMA has widened the spread over the 200-SMA, a historically bullish sign. The precious metal remains well-above its rising trend line off of the November and December highs said trend line now acts as a level of support, with $1514.00 as the main resistance headed into the coming week. The RSI on the daily chart remains overbought, and given the furious pace at which gold has gained since mid-January, a retrace could occur on a purely technical basis, as traders take profits off of the table. Still, fundamentals trump technicals, and if prices remains higher, I would conjecture that the prices are normalizing at the current rate, and thus can be expected to move higher as a significant level of support is forming following the brief correction that occurred last week. In reality, futures continue to trend higher, suggesting further gains are indeed ahead. The Slow Stochastic oscillator remains trending higher, though the %K is at parity with the %D, at 95 this suggests the rally could be stalling. To this conclusion, that prices could moderate before climbing higher, the MACD Histogram is tailing off of its bullish divergence the differential is decreasing, at 36, having moved down from 40 on Wednesday. -CV |
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bsiong
Supreme |
22-Apr-2011 22:34
Yells: "The Greatest Wealth is Health" |
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SINGAPORE, April 22 (Reuters) - Spot gold surged to a lifetime high on Friday in thin holiday trade, hitting a record for a sixth consecutive session on a weak dollar and factors ranging from geopolitical uncertainty to inflation concerns. Silver also raced to its loftiest in 31 years, notching the milestone for a seventh straight day and outstripping gold's weekly gains by a huge margin. The ongoing euro zone sovereign debt crisis, unrest in the Middle East and North Africa, rising global inflation, and most recently worries over the fiscal stability of the United States have fueled the record-breaking rally in these precious metals. Spot gold rose to an record of $1,512.50 an ounce, before easing to $1,507.69 by 0853 GMT, on track for a weekly gain of 1.5 percent -- its sixth consecutive week of gains. Spot silver hit $46.69 an ounce, its highest since 1980, on course for a weekly rise of 8.4 percent, its biggest weekly increase in two months. Silver has gained 51 percent so far this year, and gold 6 percent. This compares with a corresponding 1 percent rise in the London Metal Exchange price of copper, the bellwether of the industrial metals complex. Supporting precious metals, the dollar was languishing near a three-year low against a basket of currencies, and could take a run at the all-time low hit in 2008, pressured by record low interest rates and the crushing weight of the U.S. budget deficit. So long as the overall environment stays supportive and the dollar remains weak, gold is expected to retain its strength. Price of bullion is seen to rise to $1,700 an ounce by 2015, analysts polled by Reuters said in a poll. However, a correction might be on the horizon after the recent rapid ascent, traders and analysts said. " Gold is likely to consolidate around the $1,500-level next week," said Li Ning, an analyst at Shanghai CIFCO Futures. " The angle of the recent rally is very sharp, and we are bound to see some correction in the near term." MORE STEAM TO RUN ON? Spot gold has rallied more than $50, or 4 percent, in the past eight sessions. The Relative Strength Index, or RSI, rose to nearly 75, a level unseen since October last year, suggesting the market has been heavily overbought. The RSI on spot silver climbed close to near 89, its highest since April 1987. The gold market may have topped out, and now is the time to sell while there are still people willing to buy, said Barry Schwartz, vice president and portfolio manager at Toronto-based wealth manager Baskin Financial Services. However, Shanghai CIFCO's Li said gold has more steam to run on and expected prices to peak at $1,550 by the end of the second quarter, buoyed by the Middle East unrest, sovereign debt concerns on both sides of the Atlantic and inflation worries. The Shanghai Gold Exchange has started a trial for over-the-counter trading, providing a convenient tool for institutional clients to trade large quantities of gold, to catch up with exploding investment demand in China. Holdings in the physically backed exchange-traded precious metals funds dipped ahead of the long Easter weekend. SPDR Gold Trust , the world's biggest gold ETF, saw holdings dip 0.6 tonnes to 1,229.643 tonnes. Financial markets in Singapore and Hong Kong are closed on Friday for a public holiday, and Hong Kong will remain closed on Monday. //** Diversify your portfolio. Invest in land and get a double return in 4 to 5 years. Where? http://www.youtube.com/watch?v=kMOvjDJeOuQ Plan your future now and be financially independence. How? |
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