GLD USD
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-10.24
Gold going up this year?
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I have noticed that volume is ok though relatively thin. Price does not mirror exactly the 24 hour bid/offer of physical gold trading.
Good news! With effect from 6/11/07, the Gold ETF (GLD 10US$) will be CPFIS-OA approved. For payment using CPF, S$ must be selected as the settlement currency at the point of placing order. If US$ is selected, the fulfilled trade will be revoked to a CASH trade.
![Live New York Gold Chart [Kitco Inc.]](http://www.kitco.com/images/live/nygold.gif)
Gold edges higher on strength in crude price, copper up
At 11.11 am, gold was trading at 658.75 usd per ounce today, up slightly from 656.80 usd in late New York trade on Friday.
Analysts said the precious metal took support from gains in crude oil prices, which moved higher on escalating tensions in the oil rich Middle East.
Gold benefits from high oil prices as the metal is seen as as a hedge against oil-led inflation. The metal is also seen as a safe haven asset or store of value, so it usually trends higher on geo-political tensions.
"This (gain in oil) is probably the biggest supporting factor for the gold price. If we had seen oil moving below 60 usd a barrel I doubt we'd be seeing gold above 650 usd," said Leon Esterhuisen at Investec Securities.
Gold saw a brief spike Friday on the news Iran had captured fifteen British Royal Navy personnel in the Persian Gulf, although gains were capped by a firm US dollar and fund selling.
Continuing tensions in the region are seen supporting gold prices going forward. The United Nations voted this weekend to impose new sanctions against Iran over its continued refusal to suspend its nuclear enrichment programme.
"Players will be keeping a very close eye on the current situation between the UK and Iran, with signs of a breakdown in talks or an escalation in the current impasse potentially leading the metal to higher levels," said The BullionDesk.com analyst James Moore.
Looking ahead, analysts are also focusing on this week's economic data and its potential influence on the dollar, with US new home sales data due out later today.
Analysts said while a resurgence in the dollar late last week and profit- taking after last week's gains could impact negatively on gold sentiment in the short-term, longer term the metal is still seen trending higher.
At 12.47 GMT gold was up at 653.20 compared with 652.40 usd in late New york trades Friday. Earlier in the session gold hit 656 usd.
"Buying was strong in the Asian timezone with the weaker yen allowing yen-denominated gold prices to push sharply higher," said JP Morgan analyst, Michael Jansen.
Gold is likely to rise further if the Federal Reserve hints at higher inflation in its statement, due to be released Wednesday. However, a slightly stronger dollar capped gains.
A strong euro against the dollar on Friday spurred buying as effectively the dollar was weaker. Gold moves in the opposite direction to the US currency. However, the dollar was firmer today as the euro reversed gains.
US Dollar however weak against the JPY & EURO due to slowing economy. Gold could go higher in line with the Euro
Due to rise in CPI the FED is less likely to lower interest rates in the short term.
Boston,
March 16. According to the Federal Reserve Bank of Cleveland, the median
Consumer Price Index rose 0.3% (3.6% annualized rate) in February. The 16%
trimmed-mean Consumer Price Index rose 0.3% (3.6% annualized rate) during the
month. The median CPI and 16% trimmed-mean CPI are measures of core inflation
calculated by the Federal Reserve Bank of Cleveland based on data released in
the Bureau of Labor Statistics (BLS) monthly CPI report.
Earlier today, the BLS reported that the seasonally adjusted CPI for all
urban consumers rose 0.4% (4.5% annualized rate) in February. The CPI less food
and energy rose 0.2% (2.9% annualized rate) on a seasonally adjusted basis.
Over the last 12 months, the median CPI rose 3.6%, the 16% trimmed-mean CPI
rose 2.8%, the CPI 2.4%, and the CPI less food and energy 2.7%. [Source: FRB
Cleveland]
Gold edged up, benefiting from the dollar's losses but further gains are seen unlikely ahead of key US data later today.
At 11.44 am gold rose to 651.15 against 647 usd in late New York trades yesterday.
"The stronger euro (against the dollar) this morning leaves the gold market somewhat cheap relative to currency markets and ought to see gold challenge the 655 usd per ounce level," said JP Morgan analyst, Michael Jansen.
Traders will also be keeping a close eye on US inflation figures, due to be released at 12.30 GMT. If the figures add to concerns about rising inflationary pressures, gold's safe-haven status may be boosted.
In the longer term, analysts are still looking for gold to strike the 700 usd level by the end of this year, despite recent dips which have impeded its journey to that milestone.
LONDON - Gold rose amid recovering equity markets and strong oil prices and as the metal's recent falls sparked some bargain buying.
"Gold's advance was built on overnight gains in Asian equities and followed the cycle that has, by now, become familiar -- that of rebounding along with confidence levels in other assets," said Kitco analyst, Jon Nadler.
At 12.43 pm gold rose to 644.25 usd against 641.60 usd seen in late New York trades yesterday. Earlier in the session, the precious metal had hit 647.20 usd.
Gold's fortunes have become inextricably linked with that of the equity market since Feb 27 -- when stock markets worldwide suddenly slumped.
Investors have been pulling away from riskier assets amid the equity sell-off, while others have sold gold in an attempt to raise some cash to cope with the mini-crisis.
"The key driver for gold's comeback has once again been the upward surge in stocks," noted Nadler.
Leading shares in London remained sharply higher at midday, while New York is expected to open higher.
Analysts are still looking for gold to strike the 700 usd level by the end of this year, despite recent dips which have impeded its journey to that milestone. Some are a little more sceptical, however.
Investment bank AMB Amro raised its 2007 average gold price forecast by 2 pct to 695 usd per ounce in a report today, just short of the 700 level. Nick Moore, ABN commodity strategist said it is "highly likely that gold will again vault the 700 usd marker before the year is through."
Further supporting gold, investors' faith in the notion of gold as a hedge against oil-led inflation came back to the fore. Oil was up as the market remained cautious about the outcome of today's OPEC production meeting, even though the cartel is widely expected to keep output levels unchanged.
Sliver is said to be the poor mans gold so i suppose when gold is up sliver follows
| Metals |
Copper edges lower as global equities sell-off sparks demand worries; gold falls
LONDON - Copper prices edged lower as the sell-off on Wall Street yesterday spilled over onto Asian and European bourses today, with investors worried weakness in the US housing market might crimp demand for the metal.
LME copper for 3 month delivery was down at 6,190 usd a tonne at 12.35 pm against 6,220 usd at the close yesterday.
UBS Investment Bank analyst Robin Bhar noted while the market is concerned about slowing demand in US, the majority of demand for base metals comes from the developing world rather than the developed world.
He added supply demand fundamentals remains tight in most metals markets. "Demand destruction in the base metals sector is still proving to be elusive, mainly affecting demand at the margin," he said.
But he added that for metals like nickel, which yesterday hit a new all time high of 44,750 tonnes, demand destruction may become more widespread going forward. "We are hearing of weakening conditions in the stainless steel sector," he said. Stainless steel demand accounts for about 70 pct of total nickel consumption.
For the time being, however, nickel remains underpinned by critically low stocks and strong demand. LME nickel for 3 month delivery was up at 44,050 usd a tonne against 43,600 usd at the close yesterday.
The LME said in a daily report today nickel stocks held in its warehouse fell by 60 tonnes to 3,816 tonnes, leaving only 2,418 tonnes on warrant or available to the market - less than a day's worth of global consumption.
In other metals, zinc was down at 3,215 usd a tonne against 3,220 usd, aluminium was down at 2,717 usd a tonne against 2,737 usd, lead was up at 1,860 usd a tonne against 1,850 usd while tin was down at 13,525 usd against 13,600 usd.
At 12.28 pm gold fell to 640 usd from 648.25 usd at yesterday's close. "I don't think this is the end of the corrective phase as further risk reduction, and the necessity to generate cash for margin calls are likely to see gold and other commodity markets sold off," said TheBullionDesk.Com analyst, James Moore.
The price of gold tumbled as players shied away from risk amid concerns about US economic growth.
Stock markets have continued to weaken since yesterday when an increase in bad subprime mortgage loans in the US sparked a sell-off on Wall Street that stirred worries about the US economy and oil demand.
Subprime lenders offer loans to those who do not qualify for prime market rates because of blemished or limited credit.
In addition, recently reported poor February retail sales in the US, lower than expected hiring prospects for the spring in the US, and an OPEC summit tomorrow -- which is widely expected to do nothing to raise oil prices -- "isn't playing in gold's favour," noted Kitco analyst, Jon Nadler.
In other precious metals, platinum was down at 1,202 usd against 1,216, palladium was down at 342 usd from 345 while silver was also down at 12.65 usd against 12.83. |
See this chart daily before you jump into GLD stock. It is live !!
Gold is on it's upward trend . can anybody advise if there is any relationship between Gold and Silver ? If US$ fall, Gold goes up , as a hedge against inflation. What about Silver ? What makes it's price fluctuates ? Any gurus out there? Need advise. Thanks !
Gold is on it's upward trend . can anybody advise if there is any relationship between Gold and Silver ? If US$ fall, Gold goes up , as a hedge against inflation. What about Silver ? What makes it's price fluctuates ? Any gurus out there? Need advise. Thanks !
Gold sales hit a record $65.3bn last year in spite of a 10 per cent fall in demand in tonnage terms, according to the
World Gold Council, which released its fourth-quarter report on the market on Thursday.
Last year, price volatility affected the jewellery market, particularly in the first half, but the volume of both investment and industrial demand rose in 2006.
Rapid growth in the popularity of gold exchange traded funds means that ETFs have become the main driver of investment demand growth. The launch of several new gold exchange traded funds helped inflows into ETFs rise by 27 per cent, to 265 tonnes, last year. At the end of last year, total gold stocks held by ETFs and other similar funds amounted to 652.5 tonnes, worth around $13.3bn.
Investment in gold ETF?s overtook demand for gold bars, which fell by 18 per cent last year, to 214.5 tonnes. In total, identifiable investment demand rose by 7 per cent last year. to 636.7m tonnes.
Prospects for investment demand in the first half of 2007 remain good, according to the WGC. The largest gold ETF, streetTRACKS Gold Shares, listed on the Mexican and Singapore exchanges last year, broadening its appeal from its initial New York listing.
In Switzerland, the Zürcher Kantonal Gold ETF was launched while the GOLDIST fund was issued by Finans Portfoy in Turkey. A Japanese ETF is expected to be launched this year.
Although spending on gold jewellery reached a record $44bn last year, demand in tonnage terms fell 16 per cent to 2,267 tonnes. High prices and volatility affected buying in Asia and the Middle East, mainly in the first eight months of last year.
However, demand surged in late October during the run up to the Diwali festival in India and Eid al Fitr at the end of Ramadan, helped by a retreat in the price below the $600 level. In the final quarter of last year, gold jewellery demand rose 2 per cent in tonnage terms, compared to the same period in 2005.
The WGC said demand in most jewellery markets in January was brisk but cautioned that a return of price volatility could hinder buying.
Industrial and dental demand hit a record 458 tonnes last year, rising 5 per cent compared to 2005 and surpassing the previous high set in 2000. The electronics sector reported particularly strong growth, helped by the increasing use of gold in consumer goods such as flat screen television panels and circuitry in mobile phones and MP3 music players.
Demand from the electronics sector increased 11 per cent to 312 tonnes last year.
Gold is a good conductor of both heat and electricity and is specified when performance in circuitry is crucial, such as for car air bags, which increasingly use gold-plated circuit contacts.
Gold is being used in a new range of industrial and medical applications, including nano-technology, which are still in research or early production stages, but which could have an impact on demand in years to come.
It is even being found useful in environmental applications as it can be used in traps to remove mercury from emissions from coal-fired power stations.
