Jan 17, 2010
Gold falls on greenback rally
VNBusinessNews.com - Gold prices fell as the US dollar's rally sapped investor demand for the metal as an alternative asset. Palladium jumped to an 18-month high.
The greenback gained as much as 0.8 per cent against a basket of six major currencies, halting a five-session slide. Demand for the US dollar as a haven increased amid speculation that China's economy will cool following central bank steps to tighten credit. Gold has climbed 40 per cent in 12 months as the US dollar declined 8.5 per cent.
``It's the dollar move driving prices,'' said Afshin Nabavi, a senior vice president at MKS Finance SA, a bullion
refiner in Geneva.
Gold futures for February delivery fell $US12.50, or 1.1 per cent, to $US1,130.50 an ounce on the Comex division of the New York Mercantile Exchange, capping a 0.7 per cent decline this week. The metal tumbled 7.3 per cent last month after reaching a record $US1,227.50 on Dec. 3.
Bullion held by the SPDR Gold Trust, the biggest exchange- traded fund backed by the metal, fell 2.13 metric tons to 1,113.75 tons as of yesterday.
Gold may gain next week as investors seek an alternative to the US dollar, a Bloomberg News survey showed. Of 19 traders, investors and analysts surveyed, 12, or 63 per cent, said the metal would rise. Five forecast a decline and two were neutral.
Silver, platinum
Among other precious metals, silver futures for March delivery fell 22.8 cents, or 1.2 per cent, to $US18.427 an ounce in New York. For the week, the metal slipped 0.2 per cent.
Platinum for April delivery fell $US8.70, or 0.5 per cent, to $US1,596.10 an ounce. The price gained 1.6 per cent this week.
Palladium futures for March delivery rose $US4.70, or 1.1 per cent, to $US447.75 an ounce. Earlier, the most-active contract reached $US454, the highest price since July 15, 2008. The metal climbed 5.3 per cent this week.
Exane BNP Paribas raised its 2010 estimate for palladium to $US400, up 57 per cent, and forecast platinum at $US1,550, a 22 per cent increase from a previous projection. In a report today, the bank cited ``better supply-demand balances.''
The ETFS Platinum Trust and ETFS Palladium Trust started trading in New York on Jan. 8, offering shares backed by metal. The ETFs may deepen shortages in global supplies, analysts said.
``Platinum and palladium should continue to respond to inflows of investment to the new ETFs,'' said Tom Pawlicki, an MF Global Ltd. analyst in Chicago. (Bloomberg)
Gold falls on greenback rally
VNBusinessNews.com - Gold prices fell as the US dollar's rally sapped investor demand for the metal as an alternative asset. Palladium jumped to an 18-month high.
The greenback gained as much as 0.8 per cent against a basket of six major currencies, halting a five-session slide. Demand for the US dollar as a haven increased amid speculation that China's economy will cool following central bank steps to tighten credit. Gold has climbed 40 per cent in 12 months as the US dollar declined 8.5 per cent.
``It's the dollar move driving prices,'' said Afshin Nabavi, a senior vice president at MKS Finance SA, a bullion
refiner in Geneva.
Gold futures for February delivery fell $US12.50, or 1.1 per cent, to $US1,130.50 an ounce on the Comex division of the New York Mercantile Exchange, capping a 0.7 per cent decline this week. The metal tumbled 7.3 per cent last month after reaching a record $US1,227.50 on Dec. 3.
Bullion held by the SPDR Gold Trust, the biggest exchange- traded fund backed by the metal, fell 2.13 metric tons to 1,113.75 tons as of yesterday.
Gold may gain next week as investors seek an alternative to the US dollar, a Bloomberg News survey showed. Of 19 traders, investors and analysts surveyed, 12, or 63 per cent, said the metal would rise. Five forecast a decline and two were neutral.
Silver, platinum
Among other precious metals, silver futures for March delivery fell 22.8 cents, or 1.2 per cent, to $US18.427 an ounce in New York. For the week, the metal slipped 0.2 per cent.
Platinum for April delivery fell $US8.70, or 0.5 per cent, to $US1,596.10 an ounce. The price gained 1.6 per cent this week.
Palladium futures for March delivery rose $US4.70, or 1.1 per cent, to $US447.75 an ounce. Earlier, the most-active contract reached $US454, the highest price since July 15, 2008. The metal climbed 5.3 per cent this week.
Exane BNP Paribas raised its 2010 estimate for palladium to $US400, up 57 per cent, and forecast platinum at $US1,550, a 22 per cent increase from a previous projection. In a report today, the bank cited ``better supply-demand balances.''
The ETFS Platinum Trust and ETFS Palladium Trust started trading in New York on Jan. 8, offering shares backed by metal. The ETFs may deepen shortages in global supplies, analysts said.
``Platinum and palladium should continue to respond to inflows of investment to the new ETFs,'' said Tom Pawlicki, an MF Global Ltd. analyst in Chicago. (Bloomberg)