Gold rallies to record above $1,100
Flashback: Gold prices surge as India buys IMF reserves | Plentiful paper currency buffing gold’s shine | Gold continues record-breaking run | Gold price rises to all-time high | Fisk: Nations to hasten demise of dollar in new world order | 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% 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
Carole Vaporean and Pratima Desai, Reuters
November 6, 2009
Investors seek safe haven after bleak jobs data in U.S. raises doubts about economic recovery
Gold (GC-FT1,095.706.400.59%) surged to a record high above $1,100 (U.S.) an ounce Friday as investors sought safety after data showed the U.S. unemployment rate unexpectedly jumped to 10.2 per cent in October.
While doubts about an economic recovery boosted gold, other precious metals with an industrial component fell, their demand outlook dented.
“Gold rallied early on the unemployment numbers being higher than expected. It fuelled thoughts of additional stimulus and reinforced the concept that the Fed will not be able to raise rates any time soon,” said Frank McGhee, head precious metals trader at Integrated Brokerage Services in Chicago.
U.S. employers cut 190,000 jobs in October, greater than the 175,000 fewer jobs forecast, and the unemployment rate rose to 10.2 per cent, a 26-1/2-year high that was above average forecasts of a 9.9 per cent rate. Dealers said gold still enjoyed support from prospects of central banks buying the yellow metal to diversify reserves.
“The market has the bit between their teeth – all these investors have piled into gold in a quasi-physical sense and now they are being supported in that by the actions of Mr. Central Bank,” said RBS metals analyst Stephen Briggs.
Gold hit a record high at $1,100.90 per ounce, up more than 25 per cent this year.
By 3:45 p.m. ET, it was bid at $1,096.65 a troy ounce from $1,089.55 late in New York on Thursday.
The trigger for the surge this week was news that the International Monetary Fund had sold 200 tonnes of gold to the Reserve Bank of India for $6.7-billion.
“People are focusing on pent up demand for gold from central banks in emerging markets,” said Michael Lewis, head of commodities research at Deutsche Bank.
“The central bank community for the first time in 20 years is possibly going to be a net buyer of gold having been a net seller since 1988,” he said.
Some think Asian central banks may not hurry to follow India’s lead given current record prices and the availability of cheaper domestically produced gold.
“Indian buying was very significant, but those getting excited about the potential for copy cat moves need to consider a number of factors,” said David Thurtell, analyst at Citi.
“Culturally, India is more favourably disposed to gold than every other country. Second, it might be politically dangerous to be accumulating reserves at the all-time price high.”
The central bank story has offset some selling by investors as seen in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust.
SPDR’s holdings fell 0.055 tonnes to 1,108.344 tonnes on Thursday, marking the first decline since Oct. 30.
Spot silver (SI-FT17.38-0.04-0.20%) was bid at $17.35 in late New York business down from $17.37 late on Thursday. Platinum (PL-FT1,349.80-13.10-0.96%) was quoted lower at $1,338 than $1,353.50 and palladium (PA-FT331.75-0.10-0.03%) fell to $328.50, even with late Thursday dealings.
Source | See also under Money: Bank of England extends quantitative easing to £200bn | G20 Meet To Finalize Dumping Of Dollar This Weekend? | Gold prices surge as India buys IMF reserves | Plentiful paper currency buffing gold’s shine | Soros: China Will Lead New World Order | The time has come for North American monetary union | Loonie continues race toward parity with U.S. dollar | Dollar Reaches Breaking Point as Central Banks Shift Reserves | Flaherty drafting voluntary code for new credit company debit cards | Gold continues record-breaking run | Gold price rises to all-time high | Fisk: Nations to hasten demise of dollar in new world order | Banks balk at new credit card rules | Tight credit new threat to rebound, IMF warns ahead of Istanbul meeting | US dollar set to be eclipsed, World Bank president predicts | Dollar to fall under scrutiny at G20 summit | Credit card debt balloons | IMF approves $13bn gold sale to boost lending fund | US credit shrinks at Great Depression rate prompting fears of double-dip recession | Canada’s $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 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 20th, 2009 at 12:27 pm
[...] omission | Flaherty, USA say no to global financial tax, yes to continued ’stimulus’ at G20 | Gold rallies to record above $1,100 | G20 to pledge continued ’stimulus’, examine international reserve fund | Economic picture [...]
November 28th, 2009 at 5:14 pm
[...] omission | Flaherty, USA say no to global financial tax, yes to continued ’stimulus’ at G20 | Gold rallies to record above $1,100 | G20 to pledge continued ’stimulus’, examine international reserve fund | Economic picture [...]
December 2nd, 2009 at 1:16 pm
[...] We’re running out of gold: miners | RCMP: Big error behind missing gold at Royal Canadian Mint | Gold rallies to record above $1,100 | Gold prices surge as India buys IMF reserves | Plentiful paper currency buffing gold’s shine | [...]
January 3rd, 2010 at 2:52 pm
[...] omission | Flaherty, USA say no to global financial tax, yes to continued ’stimulus’ at G20 | Gold rallies to record above $1,100 | G20 to pledge continued ’stimulus’, examine international reserve fund | Economic picture [...]
January 16th, 2010 at 6:00 am
[...] omission | Flaherty, USA say no to global financial tax, yes to continued ’stimulus’ at G20 | Gold rallies to record above $1,100 | G20 to pledge continued ’stimulus’, examine international reserve fund | Economic picture [...]
January 29th, 2010 at 8:03 am
[...] omission | Flaherty, USA say no to global financial tax, yes to continued ’stimulus’ at G20 | Gold rallies to record above $1,100 | G20 to pledge continued ’stimulus’, examine international reserve fund | Economic picture [...]
February 15th, 2010 at 4:07 pm
[...] and “New World Architecture” | U.S. dollar sags on global financial leaders’ omission | Gold rallies to record above $1,100 | Bank of England extends quantitative easing to £200bn | G20 Meet To Finalize Dumping Of Dollar [...]
February 15th, 2010 at 5:06 pm
[...] and “New World Architecture” | U.S. dollar sags on global financial leaders’ omission | Gold rallies to record above $1,100 | Bank of England extends quantitative easing to £200bn | G20 Meet To Finalize Dumping Of Dollar [...]
February 26th, 2010 at 4:43 pm
[...] and “New World Architecture” | U.S. dollar sags on global financial leaders’ omission | Gold rallies to record above $1,100 | Bank of England extends quantitative easing to £200bn | G20 Meet To Finalize Dumping Of Dollar [...]
June 21st, 2010 at 3:23 pm
[...] ‘ultimate bubble’, calls for IMF to handle climate fund | We’re running out of gold: miners | Gold rallies to record above $1,100 | Gold prices surge as India buys IMF reserves | Plentiful paper currency buffing gold’s shine | [...]