Business
See other Business Articles
Title: Gold Rises to Record for Third Time This Week on Haven Demand
Source:
Bloomberg
URL Source: http://noir.bloomberg.com/apps/news?pid=20601010&sid=a7gtezEsQMs0
Published: Sep 17, 2010
Author: By Pham-Duy Nguyen and Nicholas Larkin
Post Date: 2010-09-17 11:31:35 by Brian S
Keywords: None
Views: 1178
Comments: 1
Sept. 17 (Bloomberg) -- Gold futures climbed to a record for the third time this week on demand for a haven from financial turmoil. Before today, gold gained 16 percent this year, outperforming stocks, bonds and most commodities as sovereign- debt concerns and an uneven economic recovery roil financial markets. Silver fell after approaching reaching the highest price since 1980. “Gold is accelerating,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. “We’re getting to a point where the public is getting spooked by the instability in financial markets. Gold is going to be the asset of choice when investors are seeking safe havens.” Gold futures for December delivery rose $3.50, or 0.3 percent, to $1,277.30 an ounce at 10:38 a.m. on the Comex in New York. Earlier, the price reached a record $1,284.40. Governments have spent trillions of dollars and reduced borrowing costs to record lows in a bid to revive the global economy. This week, the Bank of Japan sold the yen for the first time in six years because the currency’s surge to a 15-year high against the dollar imperiled the nation’s export-led recovery. The Obama administration forecasts this year’s deficit will hit a record $1.47 trillion. The Federal Reserve has kept the benchmark lending rate from zero percent to 0.25 percent since December 2008 and is expected to resume direct purchases of Treasuries to boost the economy. ‘Synchronized Devaluation’ “All the debt and deficits are so high, the only perceived way out of this mess is a global synchronized devaluation of all fiat currencies,” said Michael Pento, a vice president at Euro Pacific Capital Inc. in New York. “Gold is replacing the dollar as the world’s reserve currency.” Gold for immediate delivery rose to a record $1,282.97. Goldman Sachs Group Inc. affirmed a forecast for the metal to reach $1,300 in six months. Global holdings of gold by exchange-traded products reached a record 2,081.38 metric tons on Sept. 1 and were little changed yesterday at 2,077.9 tons, according to Bloomberg data from 10 providers. Global silver ETP assets were unchanged at 13,211.9 tons yesterday, the highest level in at least seven months, data from four providers showed. Prices have gained this year amid tame U.S. inflation. Traditionally, gold is a hedge against rising consumer prices. Inflation expectations, based on the 10-year U.S. Treasury breakeven rate, have fallen to 1.8 percent from 2.25 percent six months ago. Silver Drops Silver futures for December delivery dropped 6.1 cents, or 0.3 percent, to $20.71 an ounce on the Comex. Earlier, the price reached $21.025, the highest level since March 2008. “When gold is in a very steady uptrend, at some point” investors will start buying the cheaper silver, said Jesper Dannesboe, a senior commodity strategist at Societe Generale SA in London. “You can get a massive speculative move into silver, and it can last for a couple of months.” Platinum futures for October rose $6.10, or 0.4 percent, to $1,618 an ounce on the New York Mercantile Exchange. Palladium futures for December fell $4.45, or 0.8 percent, to $544.90 an ounce.
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Nebuchadnezzar (#0)
Ping.
The current members of the "You're a worthless sack of shit" list includes WAR, calcon, e_type_jack-off, mad-dog (more like rabidly stupid), ibluafartsky and the fascism-shill no gnu taxes (aka 400 bucks, happyfunball, 50yardline, etc, etc.) If you're on the list, don't bother writing, 'cause you're a waste of flesh.
Gold futures climbed to a record for the third time this week on demand for a haven from financial turmoil.
Mad dog gets
"calibrated..."
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]