Gold Declines as Dollar Jumps on Fed’s Bond Plan to Bolster U.S. Economy
Bloomberg reported that US economic stimulus news caused gold prices to fall.
Bloomberg reported that US economic stimulus news caused gold prices to fall.
Gold continued its three day run up $40 per ounce since the start of April. Driven by inflationary fears, political instability and high oil prices, the next key resistance level may be $1500 per ounce. However, as nations raise interest rates, gold may be headed for a correction.
Juan Carlos Artigas, Investment Research Manager, the World Gold Council commented, “the third quarter of 2010 was again marked by mixed economic news from markets around the world. While emerging economies continue to recover, central banks in developed markets appear ready to keep monetary policy accommodative as long as necessary to spur growth. In particular, statements by the Federal Reserve, coupled with a large trade deficit and record levels of debt outstanding, started to put pressure on the US dollar and increase long-term inflation expectations.”
Canadian-based mineral exploration and development company Premier Gold Mines (TSX: PG) has teamed up with Jones, Gable & Company Limited and placed its shares at $3.65. Premier plans to use the gross proceeds from the sale of the shares for exploration programs to be conducted on the Hardrock project, Red Lake projects and PQ North [...]
U.S. gold demand in the second quarter surged 10 percent year-over-year as nearly doubled investment demand offset weaker jewelry purchasing, as per industry report by the World Gold Council released on Wednesday. George Milling-Stanley, WGC’s managing director of government affairs, stated: What you would expect from an economic crisis is depressed jewelry demand all over [...]
Gold surged half a percent on Monday on a weaker U.S. dollar and light Chinese buying, but rising stock markets could curb gains. Darren Heathcote of Investec Australia in Sydney stated: I think it’s certainly consolidating. I am not convinced we won’t see those highs again yet and possibly go higher. For full story, click [...]
U.S. gold futures dipped 1 percent on Thursday as a better tone to the economy dampened safe-haven demand, while an imminent bankruptcy filing by U.S. automaker Chrysler should not affect platinum group metals demand. For full story, click here
Gold remained steady around $890 per ounce on Wednesday as investors watched equity markets to gauge risk appetite and awaited U.S. earnings and manufacturing data for more clues on the health of the global economy. Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, stated: There is not much interest at the $900 [...]
The company announces new high-grade results from its El Gallo project in Sinaloa State, Mexico. For full story, click here
Gold futures extended gains for the third straight session as a weaker rupee made the dollar-quoted gold expensive, analysts said. For full story, click here
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