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Commodity Online – Gold prices had an excellent run last week, led by the extensive fall in the US dollar and strong rally in the equity markets. The rise in crude oil prices also resulted in lifting bullion.
The US currency showcased the biggest decline in a month against euro last week as US data showed that the world’s largest economy contracted lesser than forecasts, which hinted that the recession is fading and gave rise to investor demand in riskier counters such as commodities and equities.
The outlook is bright – the most active benchmark contract at the Comex has pulled off a strong recovery, ending at $953.70 near the resistance at $960, a break and close of which will take prices towards new highs of $966.70/oz and $970.40/oz, state traders.
Enews 2.0 – Gold prices have been rising throughout February, in tandem with the world market, which stood at about 975 dollars per ounce on Thursday.
"I have never seen the gold market like this, with steady rises every day," Jitti said. "It’s being driven by big speculators abroad, the hedge funds," he opined.
The Age – Gold prices climbed on Tuesday, as the yellow metal continued to attract investors hunting a safe haven against the biting economic stormwinds, following a rise of more than 3% last week.
Spot gold was trading at $946.70 per ounce in Asian trade, up from European levels of $US942.70 yesterday. US markets were closed on Monday for the Presidents’ Day holiday.
"With the US on holiday, investors are mostly sidelined,” said Koji Suzuki, a senior analyst at SBI Futures.
Traders have pointed to the record high holdings of the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust, as evidence of strong investor interest in the precious metal.
Bloomberg – Mario Gabelli is buying Wyeth to book a 13 percent profit from its takeover by Pfizer Inc. Managers at Cohen & Steers Inc. are scooping up closed-end funds trading at a 16 percent discount to the value of their holdings. Huntington Asset Advisors Inc. is betting the widest gap between silver and gold prices in 14 years will narrow.
A year ago, these so-called arbitrage strategies would have been favorites of hedge funds whose debt-fueled trading squeezed out other investors. Since then, the credit-market seizure wiped out about 920 of the 10,096 funds in business at the start of 2008, according to Hedge Fund Research Inc. The survivors have reduced borrowing to close to nothing, according to Rasini & C., a London-based investment adviser.
Bloomberg – Mario Gabelli is buying Wyeth to book a 13 percent profit from its takeover by Pfizer Inc. Managers at Cohen & Steers Inc. are scooping up closed-end funds trading at a 16 percent discount to the value of their holdings. Huntington Asset Advisors Inc. is betting the widest gap between silver and gold prices in 14 years will narrow.
A year ago, these so-called arbitrage strategies would have been favorites of hedge funds whose debt-fueled trading squeezed out other investors. Since then, the credit-market seizure wiped out about 920 of the 10,096 funds in business at the start of 2008, according to Hedge Fund Research Inc. The survivors have reduced borrowing to close to nothing, according to Rasini & C., a London-based investment adviser.
Thai News Agency MCOT – Gold traders in Bangkok’s Chinatown closed their doors at their peak annual sales period for their shops during the Chinese New Year for the first time on record due to the high fluctuation of gold prices in the world market, Gold Traders Association president Jitti Tangsithipakdi said Monday.
The area’s gold shops will be closed on both Monday and Tuesday, Mr. Jitti disclosed.
The gold trade in Bangkok’s Yaowarat Road Chinatown was halted for the first time in memory during the Chinese New Year holidays when Thai Chinese normally buy gold as New Year’s presents. However, the high and erratic price of gold this year led potential customers to give their family members cash instead of gold.
Fluctuations in gold prices on the world markets caused difficulty for gold dealers as they are forced to adjust the price many times a day. The price currently has been moving in a range of as much as 400 baht per day.
