posted on April 6, 2006 08:32:50 PM new
From Reuters: by Atul Prakash and Zach Howard
Gold bullion rose on Thursday to a new 25-year peak within a whisker of $600 an ounce, and silver touched its highest in more than 22 years, as a shaky U.S. dollar and firm oil prices fueled active buying.
Gold has outpaced many assets and risen more than 40 percent in the past 12 months, compared with an 11 percent rise in the Standard and Poor's 500 index (^SPX - news), an indicator of U.S. equity performance.
Spot gold spiked as high as $596.50 an ounce in Europe, before later traded to $594.80/595.70 in New York, up 1 percent, compared with Wednesday's U.S. close at $587.40/8.30.
Gold futures in New York and Dubai punched above the $600 mark on commodity fund and speculative buying, and spot prices were expected to extend gains after a pause, analysts said.
"It was triggered by the dollar, the yen, and of course the idea of $70 crude," said George Gero, vice president at RBC Capital Markets Global Futures in New York. "(Higher) oil didn't help the stock market, so investors were looking for another place to put their money and they seem to be looking at the metals."
The S&P 500 eased 0.2 percent to 1,308 by midafternoon.
Buying in gold intensified after moves in currency and oil markets. The euro rose to a seven-month high versus the dollar, but later eased marginally.
Oil jumped 1.3 percent for a second straight day to end at $67.90 per barrel.
A weak dollar makes gold cheaper for holders of other currencies and lifts demand, while the metal is traditionally seen as a hedge against inflation.
"Clearly the dollar weakness is a big factor, not just for gold but for the other metals as well," said Stephen Briggs, economist at SG Corporate and Investment Banking.
"The amount of money that's still flowing into commodities, and metals in particular, just shows no let-up."
In euro terms , gold traded just below Monday's record high of 488.60 euros, while it rose to 340.25 sterling -- not far from this week's two-decade peak of 341.22 pounds.
"You have many different small factors in this market which have created an environment of insecurity and gold has shown to be the perfect insurance against any type of disruptive event," said Frederic Panizzutti, analyst at MKS Finance.
These included geopolitical instability, spread of bird flu, inflation fears and fluctuating currency markets.
"The trend remains bullish. The uptrend picked up speed especially after the rise above $590 again, but people want to see if the market can hold this level," said Shuji Sugata, assistant manager at Mitsubishi Corp Futures and Securities Ltd.
BULL MARKETS
Gains in mining companies, including the world's number one, BHP Billiton (BLT.L), pushed Britain's leading share index to a fresh 5-year high after copper prices jumped.
Copper hit a fresh high and a test of $6,000 a ton appeared inevitable on concerns that consumers will be forced to rely on critically low inventories in the seasonally busy second quarter.
Silver surged to $12.08 an ounce before easing to $12.04/12.07 in New York, versus $11.70/11.73 late Wednesday.
It gained strength from gold and on hopes that a proposed exchange-traded fund would boost demand for physical bullion.
Platinum rose to $1,082/1,086 per ounce, compared with $1,068.50/1,071 previously, while palladium spiked to $353/357 an ounce from $338/342.
posted on April 7, 2006 01:04:16 PM new
Precious metals are a great hedge against inflation. I have heard some say silver could go well over the $22 mark last set.
posted on April 7, 2006 01:12:14 PM new
LInda - the article says 25 year peak. That would be since 1981. Rueters does not need to check their stats, you need to check your math.
~~~ • ~~~ • ~~~ • ~~~ • ~~~
Never ask what sort if computer a guy drives. If he's a Mac user, he'll tell you. If he's not, why embarrass him? - Tom Clancy
[ edited by fenix03 on Apr 7, 2006 01:12 PM ]
In the MID 70's gold STARTED it's escalation......and by Feb. 1980 had reached it's TOP price of $850.00 an ounce.
Leaving this reuter-mentioned high of not quite $600.00 QUITE a bit less than it was at that time. Still has a LONG way to go before reaching THAT top high.
Hope that clears it up for the picky gold watchers. LOL
posted on April 7, 2006 07:36:52 PM newHope that clears it up for the picky gold watchers.
Hmmmm...... I don't see any picky gold watchers discussing this topic except for perhaps you, lindak. Seems like the rest of us understand the Reuters' article and the stats.
Sometime in the mid 70's gold was selling for over $800.00 an ounce and silver for around $22.00 an ounce.
Would be interesting if you could back up your own stats with a few links and facts instead of the backpeddling double-speak.
posted on April 8, 2006 05:41:13 AM new
Zing! The truth wins again.
Kiara
It's good to see another lie by Linda disproved. Now she is on Otwa lying about a poster who is no longer here to speak for himself.
And she is lying about me.
She said, "Really.....then talk to helenjw about that. She's saved and has bragged about her FBI wannabe files she's kept on every post she's ever made. OH.....I forgot...she's a liberal....and that double standard where YOU speak for all here...doesn't apply to liberals. How funny you are spaz....and you're how OLD? ROFLOL"
Although I've never bragged about having files, I do have enough records of to protect myself from Linda's continuous effort to lie about my statements...which I have used effectively on several occassions. When posting with a pathalogical liar, it's necessary to keep good records.
What a disgraceful performance on Otwa. I sincerely believe that she should be suspended for that.
posted on April 8, 2006 06:53:27 AM new
Isn't it fun watching liar_k wiggle like the TWO HEADED SNAKE she has proven herself to be.
About gold all liar_k had to say was sorry I misspoke.
But no the sickness she shares with people like Bear and DUMBO BUSH doesn't allow that. Sick people like them simply can't say I MISSPOKE OR I MADE A MISTAKE.
posted on April 8, 2006 07:08:22 AM new
Ron,
You said-
Precious metals are a great hedge against inflation. I have heard some say silver could go well over the $22 mark last set.
///////////////////////////////////////
The 80s and 90s,investors shunned gold and preferred the mighty green back,now the greenback has weakened and precious metals shine again!!
Not good for those of us who are paid in US dollars!!
/ lets all stop whining !! /
posted on April 8, 2006 09:41:39 AM newWhen posting with a pathalogical liar, it's necessary to keep good records.
I agree, Helen. And whenever lindak starts to squirm she has always made up stories about others or fudged the truth and when asked for proof she turns tail and runs.
It was really low of her to insinuate things about a poster who isn't there. I doubt anyone believes her lies because she's been caught way too often by now.
posted on April 8, 2006 10:20:27 AM new
Attacking krs is the last straw. She is history in my opinion and should be suspended for life from here and Otwa.
posted on April 8, 2006 10:53:55 AM new
Truth very seldom applies to your statements, linda. You are becoming known as someone who is not credible by any stretch of the imagination. I have no desire to control you but like most people here and there, we wish that you would just go away.
For your performance today you should be suspended from Otwa because you violated Otwa community guidelines by attacking a poster who is not posting to the thread. In fact, he has only posted once or twice to Otwa and that was years ago.
How on earth do you justify to yourself the need to trash the character of everyone who is not in political agreement with you. How can you think well of yourself after such attacks.
And please cut out the laughter and rolling on the floor. Your reported leg injury might suffer another break.
posted on April 8, 2006 11:21:16 AM new
And why suggest with your mealy mouthed innuendo that someone may possibly have a drug problem today if their only statement here years ago was that they had a problem with pain related to a war injury and used a certain drug. Hell, you could be characterized in the same way since you purportedly had a leg injury from stumbling over a stool while walking and used the same drug for pain. Would you think it acceptable if I inferred with such innuendo that you are now possibly a drug addic...strung out on oxycodin.
posted on April 8, 2006 03:29:33 PM new
ROFLOL....is THAT the best you can do helen? I've seen so much better come from you when you're pretending to be so indignant. LOL
You're still great at twisting actual events though....that's why I've often said you lie...lie..lie. It's something in your thinking process that doesn't comprehend what was actually SAID....but rather what your imagination makes up. LOL
Kiara