« Changing Landscape in Retail Jewelry | Main | Awesome Diamond Enagagement Ring Experience & Testimonial From Our Exceldiamonds Customer! »
Gold Keeps On Truckin'!
Gold futures finished Monday above $550 an ounce for the first time since early 1981, as weakness in the dollar helped spark investment demand for the metal.
"Gold continues to rally on continued U.S. dollar weakness, a trend I expect to continue over the next week," said Matthew Parry, an economist at Moody's Economy.com.
He added that he remains "reasonably bullish on gold over the medium term," forecasting that gold is headed for the $575 mark on further expectations for a lower dollar.
Gold for February delivery climbed as high as $551.40 an ounce on the New York Mercantile Exchange, an intraday level not see since March 1981. It closed at $550.50, up $9.30, or 1.6%, at its highest closing level since January 1981, according to weekly charts.
Prices have since pulled back slightly in after-hours electronic trading, falling as low as $548.60.
Overall, "gold bulls have been out in force across most of [Monday's] trade activity, driving the yellow metal to its highest level in a quarter century amid speculation of Asian Central Bank purchases, fund/investor portfolio diversification and concerns over the spread of bird flu," said James Moore, an analyst at TheBullionDesk.com in London, in a Monday report.
Looking ahead, "the path of least resistance in gold is still pointing upward," said Nell Sloane, an analyst at NSFutures.com, in daily commentary. "The gold market continues to climb as long as the global economy is positively positioned."
But "certainly at some price point above the current market, gold will need some type of increased inflationary threat or a sharply lower dollar to extend to the upside," she warned.
Gold futures racked up gains of more than $22 an ounce last week, finding support from a weaker dollar and China's announcement that it will diversify its holdings of foreign reserves.
Although Chinese authorities didn't provide a timetable for any change -- nor specify that it would increase its emphasis on gold as a reserve -- "it comes at a time when there appears to be a strong consensus for further gains in gold prices over a medium- to longer-term view," said research firm Action Economics.
"Forecasts for rising demand in major emerging countries in 2006, coupled with constrained supply, underpin the longer-term outlook," Action added.
Analysts at Dundee Securities also expects gold to benefit from a weaker dollar.
The dollar has come under pressure in the past week from expectations that the Federal Reserve is approaching the end of its rate-raising cycle. At the same time, high energy prices have stoked inflation fears, bolstering demand for gold. See Currencies.
"We expect continuing record U.S. budget and trade deficits to weigh on the greenback," said P. Mark Smith, analyst with Dundee. "The greenback could weaken further and faster if Greenspan's replacement takes the chair and eliminates rate hikes or reduces rates."
Ben Bernanke is scheduled to take over as chairman of the Fed from Alan Greenspan at the end of January.
As gold prices rise, investment and jewelry demand is likely to grow, according to Smith. Meanwhile, the supply picture is weak with few discoveries despite record exploration spending.
"This implies future mine-supply declines, which could accelerate if producers take advantage of the price rise to process lower grades at constant throughput rates, thereby reducing gold production," he said.
Dundee expects gold to breach the $600-an-ounce level next year. Along these lines, the research firm raised its 2006 price target to $540 an ounce from $500 an ounce.
The company also raised its target for silver to $9 an ounce in 2006 and said that it expects the metal to breach $10 an ounce next year.
March silver closed up 11 cents at $9.283 an ounce, well above the contract's intraday low of $9.015. April platinum finished up $13.70 at $1,018.30 an ounce, its highest close since mid-December, and March palladium tacked on $7.20 to end at $280.60 an ounce.
Look for jewelers to significantly increase their prices for gold and platinum jewelry within the coming month.
Comments
Well I really enjoyed reading it. This tip procured by you is very helpful for correct planning.
Posted by: seks filmiki on March 5, 2011 2:18 PM
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me.
Posted by: bdsm on March 6, 2011 5:46 AM
Wonderful Website online! I wished to ask if I might be capable of site some of your web web page and use a few factors for a time period paper. Please drop me an e-mail if its okay or not. Thanks
Posted by: apexbattery coupons on March 22, 2011 3:19 PM
The new Zune browser is surprisingly good, but not as good as the iPod's. It works well, but isn't as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that's not an issue, but if you're planning to browse the web alot from your PMP then the iPod's larger screen and better browser may be important.
Posted by: asics athletic shoes on March 29, 2011 12:42 PM
I'll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)
Posted by: asics shoes on March 29, 2011 9:04 PM
Some genuinely nice stuff on this site, I love it.
Posted by: Online Gry on March 31, 2011 7:21 AM
Superb write-up my friend. Th is is exactly what I have been looking for for pretty a time now?-
Posted by: Cheap rosetta stone on April 22, 2011 2:59 PM
The brand new Zune browser is surpr isingly superior, but not as great as the iPod is. It operates nicely, but is notas fast as Safari, and includes a clunkier interface. Should you occasionally plan on by using the internet browser that is not an problem, but if you??? re planning to browse the internet alot out of your PMP then the iPod is larger display screen and far better browser may possibly be vital.
Posted by: Christian Louboutin shoes on April 23, 2011 1:27 PM
The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it'll do even better in those areas, but for now it's a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod's strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.
Posted by: Christian Louboutin shoes on April 24, 2011 11:08 PM
A further fascinating publish! Th is is one particular with the couple of blogs I can return to on the normal bas is.
Posted by: Cheap rosetta stone on April 25, 2011 2:20 PM
Say that again?
Posted by: asics stratus on April 28, 2011 3:27 AM
I just could not leave your website prior to suggesting that I really loved the standard info an individual supply on your visitors? Is gonna be again regularly in order to inspect new posts
Posted by: ear infection pain relief on May 29, 2011 4:36 AM