Gold falters as dollar strengthens

Labels: » »




I'm not sure why people want to further the religion of gold right now. have we learned nothing from the 80s? That was the last time Ron Paul was pushing this and the price of gold dropped. Gold prices eased slightly on as the dollar firmed a touch versus the euro, as investors shied away from riskier assets on concerns about China tightening lending and ahead of a US interest rate decision.
Gold was bid at $1,094.70 an ounce against $1,097.25 an ounce in New York late
on Tuesday. Last week, the yellow metal touched a one-month low at
$1,081.90. US gold futures for February delivery were at $1,094.70 per
ounce, down 0.3pc.
"The dollar is stronger today, and that is keeping precious under pressure," said David Thurtell, an analyst at Citigroup. "Also, a little bit of de-risking in there too."
A firmer US currency makes metals priced in dollars more expensive for holders of other currencies. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,111.922 tonnes as of January 26, unchanged since January 19.
Among other precious metals, silver prices were at $16.64 an ounce versus $16.72 an ounce late on Tuesday. “The dollar strength has put some pressure on gold,” said Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva. “If stocks continue to fall, people may have to liquidate their gold positions.” But Bradley George and Daniel Sacks, co-portfolio managers of the Investec Global Gold Fund said that they believe that gold has finally broken clear of the $700 to $1,000 per ounce range that dominated the last two years. "We are probably in the process of finding out where the new higher range will be established. We believe that the degree of investment demand is likely to force a peak that is nearer $1,300 per ounce over the next six months with $1,000 an ounce becoming the long-term floor." via telegraph.co.uk

Google+ Badge

Google+ Followers

Translate