Gold toys with $1000/oz
Flashback: Industrial demand for silver sharpens bullish view | Global demand for gold investment soars 38% in past year | The search for the mint’s missing gold | Royal Canadian Mint’s ‘lost’ gold worth a mint | Bullion and Bandits: The Improbable Rise and Fall of E-Gold | Has the Mint’s gold vanished? | Bank crisis spawns new kind of gold rush | Gold Tops $1,000, First Time Since March as Recession Deepens | Manipulation Of Gold And Silver Prices Further Exposed | Analysts Predict Hyper-Inflation To Push Gold To $2000, Oil to $300 | Ottawa warns on gold-backed Web trades
Frank Tang, Globe and Mail
September 4, 2009
Traders say precious metal may be vulnerable to profit-taking after latest rally
Gold futures (GC-FT1,001.601.800.18%) ended $1 (U.S.) lower Friday as prices failed to surpass $1,000 an ounce, and the precious metal could be vulnerable to near-term profit taking after this week’s rally, traders said.
U.S. December gold futures settled down $1 at $996.70 an ounce on the Comex division of the New York Mercantile Exchange. It hit a session peak of $998.40, the highest price since Feb. 24.
Spot gold at $991.50 an ounce at 2:56 p.m. ET, compared with $990.10 late in New York Thursday. Prices remained within sight of the $1,030.80 high hit in March, 2008.
Gold prices were largely unchanged after the Labour Department reported the smallest decline in U.S. non-farm payrolls in a year in August. Still, the unemployment rate jumped to a 26-year high of 9.7 per cent.
“Gold is holding its own,” said Calyon analyst Robin Bhar. “The data is not bullish or bearish for gold, it is probably neutral. But we have had a good run, we have gained $40 in three days, so people are taking some money off the table.”
Gold rallied this week amid fears that the stock market could swoon and inflation could rise with central banks pumping money into the economy to fight the global recession.
“There are some concerns about the equities market, and people are very concerned about inflation because of government spending. It is a highly speculative move with not a lot of demand,” said Bruce Dunn, vice-president of trading at New Jersey-based Auramet Trading.
Bullion benefited from short covering by investors who had sold call options, technical buying and position squaring ahead of a long weekend because of the Labour Day holiday on Monday, Mr. Dunn said.
In addition, traders reported bullion buying related to closings of energy and other commodities exchange-traded products (ETNs) amid increased scrutiny by the Commodity Futures Trading Commission, the U.S. futures market regulator.
Silver (SI-FT16.570.060.36%) also held above $16 an ounce to hit a session high of $16.32, its firmest level since August, 2008, boosted by gains in gold.
Buying of gold exchange-traded funds picked up, with holdings of the largest, New York’s SPDR Gold Trust, posting the biggest one-day percentage rise since March.
The No. 1 iShares Silver Trust also posted an increase in holdings.
Traders said investors were fleeing to precious metals because they were losing confidence in a global economic recovery as Shanghai stocks hit three-month lows this week.
However, Auramet’s Mr. Dunn said gold prices should eventually head lower because the rally was short on physical demand.
The price of gold has risen toward the $1,000 an ounce level several times in the past 18 months, but each rally was followed by sharp decline.
Among other precious metals, silver was at $16.16 an ounce against its previous finish of $16.08.
Elsewhere, platinum (PL-FT1,295.005.400.42%) was at $1,247 an ounce against $1,249.50, while palladium (PA-FT296.00-2.60-0.87%) was at $290 against its previous market close of $289.
Source | See also under Money: China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank Failures and The Coming Deposit Insurance Bailout | Industrial demand for silver sharpens bullish view | Underwhelming GDP growth fails to move stocks, loonie | Ottawa plans U.S. dollar bond | A Stock Market Rally Engineered by Government | Central bank of Canada stands ready to inflate currency in response to strong loonie | Credit delinquencies up 24% in June | Derivatives rear their ugly head again: Leveraged ETFs outed | Former NY governor Spitzer: Federal Reserve is ‘a Ponzi scheme, an inside job’ | Global demand for gold investment soars 38% in past year | Cost Of US Bailout Hits A Whopping $24 Trillion Dollars | Timothy Geithner: travelling bond salesman | Record quarterly profits and bonuses: Goldman Sachs makes out like a bandit on taxpayer’s dime | Fed ‘Independence’ or Fed Secrecy? | Medvedev Unveils “World Currency” Coin At G8 | More Canadians in arrears on credit payments | The search for the mint’s missing gold | China calls anew for super-sovereign currency | Central banks to take off ‘training wheels’ | Congressman Ron Paul Slams Federal Reserve’s New Dictatorial Powers | Central Bank of Canada ‘considering’ regulatory changes, ‘continuous private liquidity creation’ | The next cellphone trick: transferring money | Royal Canadian Mint’s ‘lost’ gold worth a mint | Bullion and Bandits: The Improbable Rise and Fall of E-Gold | No one talking about dumping dollar: China minister | China explores buying $50bn in IMF bonds | Has the Mint’s gold vanished? | Chinese economists deem huge holding of US bonds “risky” as Geithner visits | Soaring loonie adds to anxiety over economy | Economist Warns Fed Will Bring About Zimbabwe Style Hyperinflation | Federal deficit to top $50B | Canadian households $1.3-trillion in debt | Digital Money Forum Pushes For Electronic Currency | Obama signs U.S. credit card reforms into law | Credit card changes benefit families, Flaherty says | Quebec pension fund managers boosted derivatives holdings despite warnings | Leaked 1955 Bilderberg Docs Outline Plan For Single European Currency | Banker at heart of credit crisis leads plan to buoy auto sales | Bank of Canada poised to print money to buy bonds | Credit companies seek to avoid regulation, create global debit system | Congressman: Reckless Spending And Taxation Prolonged Great Depression | Barclays, Lloyd’s, RBS join Goldman-Sachs in the black | Goldman-Sachs to repay TARP loan, resume private operations, bonuses, at “earliest time” possible | Bilderberg chairman: ‘Bilderberg helped create the Euro’ | Financial Rescue Nears US GDP as Pledges Top $12.8 Trillion | US backing for world currency stuns markets | UN & IMF Back Agenda For Global Financial Dictatorship | Geithner Plan Will Rob US Taxpayers: Stiglitz | US unveils P3 plan to monetize debt, nationalize banks | Bank crisis spawns new kind of gold rush | Wall Street’s Big Takeover |Financial Post editor: America’s future at risk of ‘inflationary outburst’ | U.N. panel says world should ditch dollar | IMF poised to print billions of dollars in ‘global quantitative easing’ | G20 officials pledge ‘whatever action necessary’ to revive economy | Mainstream Financial Publication Finally Admits that Austrian Economists Were Right | UK Central Bank begins using ‘new’ money | Central bank tactics pushed to brink | IMF emergency fund is doubled to $500bn, Northern Rock bank granted $14bn bailout | EU backs sweeping new financial rules, more power for IMF | Gold Tops $1,000, First Time Since March as Recession Deepens | Zimbabwe drops state currency monopoly, pegs prices to US dollars | How realistic is a North American currency? | All maxed out? Budget measures would improve credit access | Gold surges past $900 mark | Prominent Economist: Crisis Caused By Government Interventions | Zimbabwe unveils 100 trillion dollar banknote | Bank of England cloaks books, fears of monetary manipulation arise | Canadians starting to save cash, shun debt | Analyst: One Third Of Banks Could Collapse or Merge In 2009 | Banks won’t say where U.S. bailout money going | UK: Bailiffs get power to use force on debtors | IMF Chief Warns Of Riots In Response To Economic Crisis | Bank of Canada ready to monetize distressed equities | The ugly spectre of ‘new Keynesianism’ and the self-appointed Guardians | ‘Outrage’ greets banks’ failure to match rate cut | Mexico to downsize metal in coins to save a few cents | Icelanders storm central bank in protest | UK closer to joining euro, EU commission president says | Iceland turns 90 amid economic ruin, currency freeze | Maybe we should look at Zimbabwe before trying to print our way out of a money crisis | Obama appoints architects of economic collapse, financial globalism to economic team | Paulson, Bernanke defend change of plan: $700-billion now to be given directly to banks | Manipulation Of Gold And Silver Prices Further Exposed | Now the consumer crunch: falling credit limits, rising interest rates | Coming soon to your cellphone: Your credit card via RFID chip | A New World Financial Order: It Better Work This Time | Analysts Predict Hyper-Inflation To Push Gold To $2000, Oil to $300 | Ottawa to pour another $50B into mortgage markets | Bank of Canada adds $8B to credit markets | Fed Hides Destination Of $2 Trillion In Bailout Money | Flaherty lauds Keynesian global ‘economic stimulus’ strategies | Who are the Architects of Economic Collapse? | ‘Smart’ Credit Cards, Pilot Project set the Groundwork for Wireless Credit Wallets | Russian government calls for new World Order | New credit cards may shift unauthorized-transaction liabilities to the holder | IMF may need to “print money”, act as “world’s central bank” as crisis spreads | Greenspan tells Congress he’s shocked by credit crunch | Ottawa to guarantee interbank lending | Globalists Exploit Financial Meltdown In Move Towards One World Currency | Wanted: a new financial order | EU leaders to meet Bush and plan “refoundation of capitalism” | Loonie leaps, then reverses course | Bush outlines radical plan to part-nationalise banks | World needs new Bretton Woods, says Brown | IMF prescribes state regulation of ‘global financial order’ | Behind the panic: Financial warfare over the future of global bank power | Tim Rogers: Global Bankers Have Unleashed Inflationary Holocaust | New World Order: Global co-operation, nationalisation and state intervention – all in one day | Federal Reserve Moves to Monetize Commercial Paper Debts | Bank of Canada greases financial system with $12B in new cash | Congressman Ron Paul: Bailout Will Destroy Dollar, World Economy | Canadian Supreme Court refuses to hear appeal in ABCP case | Bank of Canada piles on in global inflationary swindle | Central banks continue inflating global economy | Court Grants Big Banks Immunity from Lawsuits over Derivatives Losses | Financial ’super cop’ role for Fed | Ottawa warns on gold-backed Web trades | Inflation takes over as public enemy No. 1 | Fed eyes Nordic-style nationalisation of US banks | Treasury’s Plan Would Give Fed Wide New Power | Consider a continental currency: Jarislowsky | Globalization makes national currencies obsolete | Vicente Fox Admits Plan For Single NAFTA Currency | Fraser Institute: The Case for the Amero
November 3rd, 2009 at 1:17 am
[...] | G20 agrees to continue economic stimulus measures; Geithner shops international reserve accord | Gold toys with $1000/oz | How the collapse of Lehman Brothers pushed Wall Street to the brink | China Set to Buy $50 [...]
November 19th, 2009 at 5:00 pm
[...] $1-trillion debt baby | Gold regains $1,000 | UN wants new global currency to replace dollar | Gold toys with $1000/oz | China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank [...]
November 19th, 2009 at 5:15 pm
[...] $1-trillion debt baby | Gold regains $1,000 | UN wants new global currency to replace dollar | Gold toys with $1000/oz | China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank [...]
November 20th, 2009 at 12:14 pm
[...] | G20 agrees to continue economic stimulus measures; Geithner shops international reserve accord | Gold toys with $1000/oz | How the collapse of Lehman Brothers pushed Wall Street to the brink | China Set to Buy $50 [...]
December 31st, 2009 at 1:39 pm
[...] [...]
January 3rd, 2010 at 4:33 pm
[...] rises to all-time high | IMF approves $13bn gold sale to boost lending fund | Gold regains $1,000 | Gold toys with $1000/oz | Industrial demand for silver sharpens bullish view | Global demand for gold investment soars 38% [...]
February 15th, 2010 at 5:08 pm
[...] $1-trillion debt baby | Gold regains $1,000 | UN wants new global currency to replace dollar | Gold toys with $1000/oz | China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank [...]
February 26th, 2010 at 4:45 pm
[...] $1-trillion debt baby | Gold regains $1,000 | UN wants new global currency to replace dollar | Gold toys with $1000/oz | China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank [...]
February 27th, 2010 at 10:35 am
[...] $1-trillion debt baby | Gold regains $1,000 | UN wants new global currency to replace dollar | Gold toys with $1000/oz | China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank [...]
March 1st, 2010 at 10:54 am
[...] $1-trillion debt baby | Gold regains $1,000 | UN wants new global currency to replace dollar | Gold toys with $1000/oz | China Set to Buy $50 Billion in IMF Notes | Investors dump money market funds | More US Bank [...]
April 30th, 2010 at 8:38 am
[...] [...]