By: bobhwang
06 Sep 2007, 06:19 PM EDT
Msg. 600337 of 600350
(This msg. is a reply to 600312 by abadgoodgirl.)
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abdgirl: We shall see...That option not yet exercised...
the futures of gold are now...no waiting...- - - - -
By: abadgoodgirl
06 Sep 2007, 06:30 PM EDT
Msg. 600342 of 600350
(This msg. is a reply to 600337 by bobhwang.)
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bobhwang: did you ever wonder who was buying up the gold while the Federal Reserve had the price of gold pegged to a certain price for almost 20 years?
Remember the price of gold was flatlined for over a decade... I have a feeling somebody took advantage of buying it at artificially priced LOW levels. There is no out for the other side. NONE...and they CANNOT crash the market...our team thought of that too.
CMKX has the resources and can IPO CIM when they see fit. Maybe tomorrow?
- - - - -
UPDATE 5-Gold hits 16-month high on demand, technicalswww.reuters.com/article/marketsNews/idUKL0674519820070906?rpc=44&pageNumber=1Thu Sep 6, 2007 5:17PM EDT
By Carole Vaporean
NEW YORK, Sept 6 (Reuters) - Gold surged to a 16-month high on Thursday, boosted by strong physical demand, technical buying and firm energy prices, analysts said.
"For most of this week we've seen fund buying. Today it was just steady, consistent buying. As we broke through some key levels there were some stops triggered, as well," said Paul McLeod, vice president of precious metals at COMMERZBANK.
While he noted strong physical demand also pushed gold higher, he said fund buyers were the price drivers.
"Funds are definitely in and they're long and they keep getting longer," said McLeod.
Gold climbed to a peak at $697.70 an ounce, its highest since May 2006, but traded at $695.70/696.30 by late New York trade against $681.40/682.00 in New York late on Wednesday.
Dealers said strong gold fundamentals fueled the rally.
"The fundamentals are good. There are expectations of increasing physical demand, particularly out of India for the wedding season, and also demand from jewellers and watchmakers in Europe," said Robin Bhar, analyst at UBS Investment bank.
A number of other reasons were cited for gold's rally, from higher oil prices, which draws those looking for an inflation hedge, and dollar declines, which attracts investors holding other currencies to dollar-denominated gold.
Crude oil rose above $76 per barrel after a drop in U.S. gasoline and crude inventories stoked fears of a fuel shortage this winter in the world's biggest consumer.
Renewed tensions in the Middle East, when Syria accused Israel of bombing its territory [nL062568], also helped drive oil prices up and spurred flight-to-safety gold purchases.
Investors watched the euro, which initially fell against the dollar after European Central Bank President Jean-Claude Trichet said recent market volatility had led to uncertainty. But the dollar later fell against the euro, making gold cheaper for holders of other currencies.
The dollar fell to a one-month low as it looked increasingly vulnerable amid rising mortgage delinquencies and credit concerns fanning fears of slower U.S. growth ahead of the much-anticipated U.S. employment report.
On Friday at 0830 EDT/1230 GMT, August U.S. payrolls data is due and is projected by analysts to show tepid gains.
If jobs growth comes in as expected, it may support calls for the U.S. central bank to cut the key overnight rate.
An interest rate cut tends to weaken the dollar and spurs flight-to-quality purchases.
"Gold prices continue to be heavily influenced by investor sentiment and movements in foreign exchange rates," said Michael Widmer, director of metals research at Calyon Corporate and Investment bank.
Gold traditionally has been used by investors as protection against economic and political uncertainty. But in recent months it behaved much like other financial assets because of the growing role of commodities in diversified portfolios.
"Gold does seem to have found some momentum of its own this week, suggesting the metal's safe-haven attributes have well and truly kicked in," said James Moore, precious metals analyst at TheBullionDesk.com.
In other metals, silver was catching up with gold's gains, rebounding 11 percent since last month's sharp drop as purchases from jewellers and bargain hunters resurfaced.
Silver rose to as high as $12.52, its highest since Aug. 16, before easing to $12.39/12.42 an ounce, versus $12.19/12.22. Palladium advanced to $333.05/337.00 an ounce, also hitting its highest since Aug. 16 at $335.50, from $329.50/333.50 in New York.
Platinum hit one-month high of $1,286.50 before falling to $1,284.50/1,291.50 an ounce, against $1,269.50/1,276.50.
"The main factor for the platinum price is still concern about a shortfall this year, caused in part by the buoyant demand for cars expected. We therefore envisage moderate gains over the next few months," Commerzbank said in a daily note.
(Additional reporting by Chikafumi Hodo in Tokyo and Lewa Pardomuan in Singapore)
US gold close strongest in 4-mths after job losseswww.reuters.com/article/marketsNews/idUKN0722422720070907?rpc=44Fri Sep 7, 2007 4:40PM EDT
Market News
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Free $50,000 Practice Account. By Carole Vaporean NEW YORK, Sept 7 (Reuters) - U.S. gold futures finished at
their highest close since early May, after shooting to a
4-1/2-month peak on Friday following a bleak U.S. jobs report
that increased prospects for a Federal Reserve interest rate
cut, traders said. Some analysts began talking about possible recession after
seeing the first decline in payrolls in four years, and sharp
downward revisions to July and June jobs growth. The U.S. Labor Department reported losses of 4,000 nonfarm
payrolls in August. The negative readings came in sharp
contrast to economists' average forecasts for job gains of
110,000, in a Reuters poll. Benchmark December gold (GCZ7: Quote, Profile, Research) on the COMEX division of the
New York Mercantile Exchange finished $5.10 higher at $709.70
an ounce. It soared to $716.60, its highest level since April
23, shortly after the labor market reading. COMEX estimated Friday gold trade at a heavy 129,854 lots. Andy Montano, a director at Scotiamocatta in Toronto said,
the weak employment data sparked flight-to-quality trades in
the U.S. bond market that inspired similar purchases of gold. "While the (gold) buying was not exactly flight-to-quality
buying, gold has an image as a reserve of wealth. So there is
an element of that showing in the price," Montano said. Traders also pointed to a tumbling dollar. Montano noted
that the dollar index fell to a 15-year low on Friday. Investors tends to buy gold when the dollar drops, as the
dollar-denominated asset's value rises in overseas markets. Until recently, analysts said, the strong labor market was
seen as an economic cushion. If that underpinning has
disappeared, they said U.S. growth becomes more problematic. "I think that payrolls report sparked some safe-haven
buying of gold). The thinking is that payrolls will exacerbate
financial market volatility and the safe-haven buying is in
response to that," said Patrick Fearon, precious metals analyst
at A.G. Edwards & Sons in St. Louis. Once the gold rally got underway, traders said short-cover
buying and some new positions were added as key upside
technical levels were breached. For now, speculators have their sights set on the upper
band of December gold's range back to July 2006 at $720 an
ounce. Fearon said he thinks the precious metals rally should
reverse course before long, arguing that a slower economy would
ease inflation pressures and therefore crimp gold buying. Montano noted that the risk reversal trade on gold options
was in play for most of the week. "That's where people are buying the call options in order
to cover the upside risk. The whole issue of the upcoming
anniversary of Sept. 11 and the release of a new video,
supposedly by Bin Laden must be in people's minds as a
safe-haven play and risk reversal too," said Montano. "Cover your risk and be prepared for anything," he added. A purported new videotape of Osama bin Laden issued Friday
reminded of al Qaeda's ability to command attention six years
after the Sept. 11 attacks, even though a U.S. official said
the message contained no overt threats. [ID:nN07202887] Gold had already begun to rally before the gloomy jobs
data. London bullion surpassed the $700 per-ounce level on
higher crude oil prices on Middle East tensions and energy
supply concerns. Oil's inflationary implications helped push
gold prices to a 16-month peak. By 1445 EDT, spot gold <XAU=> edged back below $700 to
$699.90/700.70, above $695.70/696.30 late Thursday, but off the
$707.10 peak. The afternoon fix was set at $701. COMEX December silver (SIZ7: Quote, Profile, Research) advanced 22.70 cents to close
at $12.76 an ounce. It hit a $12.8450 high, last seen Aug. 15. Spot silver <XAG=> rose to $12.51/12.54 an ounce, up from
$12.42/12.45 late Thursday. It set a $12.67 peak, its highest
level since Aug. 15. London silver was fixed higher at $12.57 per ounce. NYMEX October platinum (PLV7: Quote, Profile, Research) moved up $6.10 to end at
$1,295 an ounce. Spot <XPT=> rose to $1,286.10/1,293.10. December palladium (PAZ7: Quote, Profile, Research) slipped $0.45 to $340.80 an
ounce. Spot palladium <XPD=> slipped to $332.50/336.70.
© Reuters 2007. All rights reserved.