Published: Tuesday November 10, 2009 MYT 8:01:00
Weak US$ at 15-month low pushes gold to new high
NEW YORK:
Gold prices climbed to another new high Monday as the U.S. dollar sank to a 15-month low.
Gold for December delivery soared as high as US$1,111.70 on the New York Mercantile Exchange before settling at $1,101.40 an ounce, up $5.70, or 0.5 percent.
The gains came as the ICE Futures US dollar index, which measures the dollar against other currencies, dropped more than 1 percent to its lowest level since August 2008. The dollar weakened after finance ministers from the Group of 20 countries pledged over the weekend to maintain their stimulus efforts and keep interest rates low to further a global economic recovery. The G-20 leaders did not address how they might support currencies that have fallen in response to low rates. U.S. rates are near zero, which has contributed to the dollar's decline.
Gold, meanwhile, is seen as a hedge against the weak dollar and inflation, which investors fear could become a problem down the road if the greenback keeps falling.
"Short-term traders are looking at gold as an inverse play on the dollar," said Nicholas Brooks, head of research and investment strategy at ETF Securities in London.
Other commodities that are bought and sold in dollars have benefited from the greenback's slide because foreign investors can buy more with less money.
In other Nymex trading, December silver rose 10.5 cents to $17.48 an ounce, while December platinum rose $19 to $1,364 an ounce.
December copper futures added 1.5 cents to $2.9675 a pound.
In addition to the weaker dollar, jitters over tropical storm Ida helped support higher energy prices Monday. However, forecasters say the storm will likely weaken and bypass most drilling platforms and refineries in the Gulf of Mexico.
Light, sweet crude for December delivery rose $2 to settle at $79.43 a barrel.
Heating oil futures rose 5.92 cents to $2.0627 a gallon and gasoline futures gained 5.75 cents to $1.9818 a gallon.
Grain prices surged on the Chicago Board of Trade.
December wheat futures jumped 22.75 cents to $5.20 a bushel, while corn for December delivery rose 19 cents to $3.86 a bushel.
January soybeans gained 17 cents to $9.72 a bushel.
Prices for cotton, coffee and orange juice also rose.
- AP
Showing posts with label Stocks~Poh Kong. Show all posts
Showing posts with label Stocks~Poh Kong. Show all posts
Tuesday, November 10, 2009
Sunday, November 1, 2009
Poh Kong ~ 01 Nov 10 : value chart
01 Nov 2009
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Price 41 sen
EPS ma 12mo 6.9 sen
EPS f 12 mo 6.9 sen
Ncal 09 oct 49.3 sen
Ncal 10 oct 56.5 sen
EPS value 10 oct 50 sen
Fair value 10 oct 50 sen
Upside 12 mo 21.9 %
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My call to myself : Buy at 41 sen
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Thursday, September 10, 2009
Gold Prices Fall, Retreating From $1,000
Sept. 9 (Bloomberg) -- Gold fell from more than $1,000 an ounce as some investors sold the metal after the price climbed to an 18-month high yesterday. Silver also slipped.
Bullion futures reached $1,009.70 an ounce yesterday, the most since March 2008, as the dollar dropped 0.9 percent against a basket of six major currencies. Today, the dollar sank as much as 0.8 percent against the euro, falling to a 2009 low, and gold futures touched $1,005 before erasing gains. Gold tends to rise when the U.S. currency weakens.
“An expected period of profit-taking pushed gold back from its high,” Mark O’Byrne, a director at broker GoldCore Ltd. in Dublin, said in a note. “A very good indicator of gold’s sustainability has been visible today as it has constantly tested the $1,000 an ounce level. Investors are buying because they are worried regarding property and stock markets.”
Gold futures for December delivery fell $2.70, or 0.3 percent, to $997.10 an ounce on the New York Mercantile Exchange’s Comex division. The metal reached a record $1,033.90 on March 17, 2008.
“It seems inevitable that the near-infinite supply of paper and electronic money will fall in value versus the finite currency that is gold,” O’Byrne said in the note. “Increasing concerns regarding the sustainability of the global recovery and about the outlook for inflation should see gold continue to rise.”
Spot Price Eases
In London, bullion for immediate delivery slipped $1.63, or 0.2 percent, to $993.78 an ounce at 6:56 p.m. local time. London spot prices reached an all-time high of $1,032.70 an ounce on March 17, 2008.
Gold may resume its September rally, which boosted the price 4.9 percent through yesterday, should the dollar continue to decline, analysts said. Before today, the dollar sank 1.1 percent this month against the six-currency basket.
“The dollar remains the key factor determining gold’s direction,” Pradeep Unni, a Richcomm Global Services analyst in Dubai, said in a report. “If the dollar continues to be pressured by investors selling it to buy riskier assets, bullion could extend gains. If gold can keep above $1,000 this week, it may pave the way for a test of the record.”
The dollar may “rebound on any positive economic news,” Miguel Perez-Santalla, a Heraeus Precious Metals Management sales vice president in New York, said in a note.
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Bullion futures reached $1,009.70 an ounce yesterday, the most since March 2008, as the dollar dropped 0.9 percent against a basket of six major currencies. Today, the dollar sank as much as 0.8 percent against the euro, falling to a 2009 low, and gold futures touched $1,005 before erasing gains. Gold tends to rise when the U.S. currency weakens.
“An expected period of profit-taking pushed gold back from its high,” Mark O’Byrne, a director at broker GoldCore Ltd. in Dublin, said in a note. “A very good indicator of gold’s sustainability has been visible today as it has constantly tested the $1,000 an ounce level. Investors are buying because they are worried regarding property and stock markets.”
Gold futures for December delivery fell $2.70, or 0.3 percent, to $997.10 an ounce on the New York Mercantile Exchange’s Comex division. The metal reached a record $1,033.90 on March 17, 2008.
“It seems inevitable that the near-infinite supply of paper and electronic money will fall in value versus the finite currency that is gold,” O’Byrne said in the note. “Increasing concerns regarding the sustainability of the global recovery and about the outlook for inflation should see gold continue to rise.”
Spot Price Eases
In London, bullion for immediate delivery slipped $1.63, or 0.2 percent, to $993.78 an ounce at 6:56 p.m. local time. London spot prices reached an all-time high of $1,032.70 an ounce on March 17, 2008.
Gold may resume its September rally, which boosted the price 4.9 percent through yesterday, should the dollar continue to decline, analysts said. Before today, the dollar sank 1.1 percent this month against the six-currency basket.
“The dollar remains the key factor determining gold’s direction,” Pradeep Unni, a Richcomm Global Services analyst in Dubai, said in a report. “If the dollar continues to be pressured by investors selling it to buy riskier assets, bullion could extend gains. If gold can keep above $1,000 this week, it may pave the way for a test of the record.”
The dollar may “rebound on any positive economic news,” Miguel Perez-Santalla, a Heraeus Precious Metals Management sales vice president in New York, said in a note.
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