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Gold Seek Silver Seek The Platinum Guild 321 Gold The Mining Speculator FAME Mathematically Perfected Economy CEO Express The Golden Sextant Finance Sense Online Bloomberg News Congressman Ron Paul
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Encylopedia of Gold Facts
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Thursday, May 8, 2008
Gold ticked higher on Thursday helped by strong oil prices, but a firmer dollar capped gains and prompted investors to trade cautiously ahead of key U.S. economic data. Gold was quoted at $871.65/872.35 an ounce at 6:22 a.m. EDT, against $870.85/872.05 late in New York on Wednesday and last week's four-month low at $845 an ounce. "It's hard to see a clear trend at the moment on gold. Probably we are going to bounce around in the near term," said Michael Widmer, metals analyst at Lehman Brothers. Widmer said that if one looks at the macro-economic environment in the United States, there could still be a case for people to buy more gold. But on the other hand, the dollar was slightly stronger on expectations that the U.S. Federal Reserve might not lower interest rates further, he added. A firmer dollar makes gold costlier for holders of other currencies and often lowers bullion demand. The metal is also generally seen as a hedge against oil-led inflation. The dollar hit a two-month high against a basket of major currencies after a Financial Times report said the United States and Europe now have a united desire to see the dollar strengthen against the euro, citing officials. Investors awaited a meeting of the European Central Bank later on Thursday. Even though interest rates are expected to be left on hold at 4 percent, markets will be scrutinizing every word from ECB president Jean-Claude Trichet's news briefing at 8:30 a.m. EDT. They will also be looking at the release later on Thursday of U.S. government data for initial jobless benefit claims and wholesale inventories for an indication of how the economy is performing. OIL SUPPORTS Gold has lost more than 15 percent in value since spiking to a lifetime high of $1,030.80 on March 17, mainly driven by profit taking and declines in other commodities. "Despite euro weakness, crude oil is a pillar of support for precious metals. Amid the low trading volumes, gold and silver prices have been sticky, resisting major downward pressures so far this week," said Walter De Wet, analyst at Standard Bank. "We foresee this support continue, which should somewhat offset downward pressure caused by currency moves." Oil hit a record high near $124 a barrel. In other markets, gold futures for June delivery on the COMEX division of the New York Mercantile Exchange rose $1.1 to $872.40 an ounce in electronic trading. Spot platinum rose 1.6 percent to $1,980/1,995 an ounce from $1,949.50/1,969.50 late on Wednesday. In industry news, Lonmin Plc, the world's third biggest producer, posted a 63 percent jump in first-half profit on strong prices, but withdrew a long-term output target due to South African power problems. The company, listed in London and with operations in South Africa, had been aiming to boost output to 1.2 million ounces by 2012 by building new mines, but said on Thursday this was now in doubt, Chief Executive Brad Mills said. Silver edged higher to $16.63/16.68 an ounce from $16.60/16.66, while palladium rose to $426/430 an ounce from $420.50/428.50 late on Wednesday. That is all for now. | ||||||||||||||||||||
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Gold and Silver News
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(Speaking on how high the gold price could go) Pierre Lassonde, President of Newmont Mining, recently had this to say: "I believe gold could have three zeros after the first number. I just don't know what the first number will be.
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