Gold reached new 2010 high in dollars (over $1,175 per ounce) in Asian trading overnight and again Europe this morning (over $1,177 per ounce) as investors continue to allocate funds to gold in order to hedge sovereign debt contagion risk.
Gold jumped to $1,169/oz, on Monday in Asia before falling in New York, it then recovered to close with a small gain of 0.11%. It traded in range from $1,150/oz to $1,157/oz in Asian trading this morning. Gold is currently trading at $1,154/oz and in euro and GBP terms, it is trading at €847/oz and £750/oz respectively.
By Julian D.W. Phillips
The piece we wrote on gold de-coupling from the $:€ exchange rate proved absolutely correct. The action of the last week has shown that as gold rose strongly in the € in the pound and is moving up in the $ alongside most currencies. More than that, market commentators are now mentioning this too. But this action involves far more than these two main currencies.
By Sol Palha
The dollar has rallied very strongly easily taking out the lower end of the targets we projected several months ago. It almost closed above 81 on a monthly basis. Had it done this, it would have made the outlook even more bullish. The dollar has gone on to put in series of new 9 month highs and thus by contrast one would have expected Gold and the other precious metals to do the opposite. However, this has not taken place.
By Jeffrey Nichols
The snap-back in the U.S. dollar price of gold this past week to $1,100 an ounce may mark the beginning of a new upward phase in the metal’s long-term bull market. Importantly, gold found support near its early February 14-week low point of $1,045 after a two-month-long retreat. But until gold breaks above its December U.S. dollar-denominated all-time high of $1,227 many players in U.S. markets will remain skeptical of the bull market’s staying power.
In 2009, dollar demand for gold remained above the USD 100 billion mark for the second year in succession against the backdrop of continued turbulence in financial and commodity markets. According to World Gold Council`s (WGC), this resilience in demand was achieved in the context of average gold prices 12% higher than those in 2008, at USD 972.35/oz.
NEW YORK : Last month, billionaire global investor George Soros rattled the bullion world by predicting that gold is an ultimate asset bubble and there was no fundamental reason why the yellow metal price should keep on rising.
By Dan Norcini
The reflation trade was back on in a big way today as both the commodity world and the equity world witnessed sizeable money flows coming their way. The Dollar’s weak display was enough to send the algorithms wildly to the buy side once again as the war between the inflationists and the deflationists saw the deflation camp in all out retreat during this particular skirmish. Copper, crude oil, soybeans and even lumber were all stronger today.
Gold built on last week’s gains and rose nearly 1% yesterday, closing at $1,099.50/oz and gold also rose in other major currencies. Gold has risen in Asian trading and again in early European trade and is currently trading at $1,113.20/oz and in euro and GBP terms €816/oz and £710/oz respectively. As expected the crisis in the Eurozone has seen gold surge in Euro terms to new record (nominal) highs over €817/oz – thus surpassing the previous record high seen in December 2009 at €813/oz.
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