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Gold surges to 28-year high, to US$820 an ounce.
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mirage
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08-Nov-2007 08:43
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mirage
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08-Nov-2007 08:18
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NEW YORK (MarketWatch) -- Gold futures rallied Tuesday to their highest level since 1980, propelled by the dollar's tumble to yet another record low against the euro and by surging crude-oil prices.
Gold for December delivery rose $12.60 to end at $823.40 an ounce on the New York Mercantile Exchange. Earlier, the contract reached an intraday high of $828, a level not seen since 1980.
The record high for Nymex gold was $875 set on Jan. 21, 1980, and the record settle was $825.50 set on the same date.
"The surging oil price is an important factor and investors are using gold as an inflation hedge," said Mark O'Byrne, director of Gold and Silver Investments Ltd., in a research note. "But of more importance is the dollar falling to new all time record lows against the euro and a basket of currencies again this morning."
"Morgan Stanley analysts have warned that the dollar could experience a more 'violent correction' and their managing director in Asia Stephen Roach has said that gold will likely remain a safe haven given what is happening in the financial markets," O'Byrne said.
Dollar tumbles
The dollar traded down against the euro Tuesday after sinking to new record lows, as investors weighed ongoing credit woes and surging crude-oil futures as they awaited Thursday's European Central Bank interest rate decision. The euro was trading at $1.4554 after earlier rising to $1.4571, its highest level since the united European currency began trading in January 1999.
The dollar index, which tracks the greenback against a basket of six major currencies, dropped 0.5% at 76.05. See Currencies.
"We are in a commodities bull market. Gold, crude, grains, softs, metals, everything that is a commodity is in fashion," said Zachary Oxman, a senior trader at Wisdom Financial, in emailed comments.
"As the dollar sells off, as foreign currencies look to unpeg from the U.S. dollar, as the stock market continues its shakiness and eventually corrects significantly, watch for commodities to be your savior," Oxman said.
Crude-oil futures also rallied to record highs, boosted by expectations of a sharp drop in crude supplies and dollar weakness. See Futures Movers.
Gold and crude oil, as dollar-denominated commodities, benefit from dollar weakness.
"The driving force in the gold market remains the U.S. dollar," said Peter Spina, an analyst at GoldSeek.com. "Investment demand remains very strong, yet the potential for much more is what gold investors are looking at going forward."
"With gold near $850 record levels, focus now turns to the $1,000 mark. The path to this milestone is up for debate, but I would not discount the ability for gold to reach this within months," Spina said.
Peter Grandich, editor of The Grandich Letter, said: "There's a sharp correction on gold out there, but the $64,000 question is does it come before or after we make a new, all-time high?"
"I don't know the answer, but I can tell you betting against gold for over five years has been a bad proposition and the same looks like the case for the foreseeable future," Grandich said in emailed comments.
Silver surges 4%
Also on Nymex, December silver surged 59.50 cents, or 4%, at $15.38 an ounce.
"Silver is also breaking through major resistance and should now outperform the gold price," Spina said. "I am looking for $18-$20 on the upside [in the] short term."
January platinum rallied $17.20 at $1,483.70 an ounce and December palladium rose $4.60 at $379.70 an ounce.
December copper gained 3.95 cents at $3.3415 a pound.
Indexes tracking mining and metals shares rallied on Tuesday. The Philadelphia Gold and Silver Index (XAU:
phlx gold silver index capital-weight
Last: 188.53-4.64-2.40%
4:02pm 11/07/2007 Delayed quote data Sponsored by: CBOE Gold Index
Last: 192.580.000.00%
4:49pm 11/07/2007 Delayed quote data Sponsored by: amex gold bugs index equal-$ weight
Last: 447.90-8.03-1.76%
5:07pm 11/07/2007 Delayed quote data Sponsored by: As for sector exchange-traded funds, the StreetTracks Gold Trust ETF (GLD:
streetTRACKS Gold Shares ETF
Last: 82.24+0.81+0.99%
4:15pm 11/07/2007 Delayed quote data Sponsored by: ishares silver trust ishares
Last: 151.71-2.04-1.33%
4:00pm 11/07/2007 Delayed quote data Sponsored by: market vectors etf tr gold miner etf
Last: 51.53-0.72-1.38%
4:08pm 11/07/2007 Delayed quote data Sponsored by: Gold warehouse inventories were unchanged at 7.3 million troy ounces as of late Monday, according to Nymex data. Silver inventories rose by 603,374 troy ounces to stand at 133.9 million troy ounces, while copper supplies fell by 130 short tons to stand at 18,965 short tons.
 Polya Lesova is a MarketWatch reporter based in New York.
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mirage
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07-Nov-2007 09:30
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Quotes: "Gold holdings have been reaching a record every month since July," said Carlos Sanchez, precious-metals analyst with CPM Group. December gold futures on the Comex division of the New York Mercantile Exchange have risen from a mid-August low of $651.60 an ounce to a contract high late Tuesday morning of $828. Some of the factors boosting the metal have included record lows in the dollar following 75 basis points of easing in the U.S. federal funds futures, worries the easing will lead to inflation, record highs in crude oil, and global worries such as the recent tensions between Turkey and Kurds in Iraq and now the political situation in Pakistan. |
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mirage
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06-Nov-2007 23:47
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NEW YORK (MarketWatch) -- Gold futures rallied Tuesday to trade near a fresh 28-year high, propelled by the dollar's tumble to yet another record low against the euro and by surging crude-oil prices.
Gold for December delivery rose $9.60 at $820.40 an ounce on the New York Mercantile Exchange. In electronic trading, the contract hit an intraday high of $824, while in regular trading it reached a high of $821.80.
The record high for Nymex gold was $875 set on Jan. 21, 1980, and the record settle was $825.50 set on the same date.
"The surging oil price is an important factor and investors are using gold as an inflation hedge," said Mark O'Byrne, director of Gold and Silver Investments Ltd., in a research note. "But of more importance is the dollar falling to new all time record lows against the euro and a basket of currencies again this morning."
"Morgan Stanley analysts have warned that the dollar could experience a more "violent correction" and their managing director in Asia Stephen Roach has said that gold will likely remain a safe haven given what is happening in the financial markets," O'Byrne said.
The U.S. dollar slumped to a new record low Tuesday against the euro, with the euro rising as high as $1.4555, on the back of further credit-market jitters that have led many to conclude there will be further U.S. rate cuts.
The dollar index, which tracks the greenback against a basket of six major currencies, dropped 0.5% at 76.105.
"The amount of money being thrown at bullion has risen exponentially once again as the worries sparked by the subprime debacle have spilled over to the banking sector, where investors expect further bad surprises to emerge," said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note.
U.S. stocks ended lower on Monday, with Citigroup's announcement of up to $11 billion in further subprime write-downs hurting the bank and its financial-services peers.
Crude-oil futures also rallied on Tuesday, with the December contract last trading up $1.77 at $95.75 a barrel.
Also on Nymex, other metals prices gained. December silver surged 25 cents at $15.035 an ounce, January platinum gained $10.60 at $1,477.10 an ounce and December palladium rose $2.40 at $377.50 an ounce.
December copper gained 2.10 cents at $3.3230 a pound.
Gold warehouse inventories rose by 1,543 troy ounces to stand at 7.3 million troy ounces as of late Friday, according to Nymex data. Silver inventories rose by 603,374 troy ounces to stand at 133.9 million troy ounces as of late Monday, while copper supplies fell by 130 short tons to stand at 18,965 short tons.
Polya Lesova is a MarketWatch reporter based in New York.
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