Spot Gold
London Gold Market Report
SPOT GOLD slipped from a new record high of $1070.50 an ounce on Wednesday morning in London, easing back 0.8% as world stock markets jumped and crude oil shot to a 12-month high above $75 per barrel.
Both US Dollars and Japanese Yen – last autumn’s “safe haven” currencies amid the global banking collapse – were sold lower on the forex market.
World No.1 chipmaker Intel reported a smaller-than-expected drop in quarterly profits.
British government gilt prices fell at the fastest pace in three months following news that UK unemployment – now at a fresh 12-year record – rose less quickly than analysts forecast over the summer.
“We have yet to see any formation that suggests this up move [in gold] is about to end,” says the latest technical analysis from Scotia Mocatta.
“Our measured move target remains $1106 with trailing stop-loss now raised to $1036 on a close basis.”
“If you’re a believer in cycles, we’re still only halfway to the all-time high for gold prices,” said David Garofalo, CFO of Canada’s Agnico-Eagle Mines Ltd, in an interview yesterday.
“The real high was $850 back in 1980, which would be about $2,300 in today’s Dollars.”
Former Newmont Australia director John Dow, now chairman of Troy Resources, told reports today he expects the gold price to trade between $1100 and $1650 an ounce from here to year-end.
“Investors fear how much damage the US Dollar will suffer and this is in our opinion lifting gold,” J.P.Morgan analysts told clients yesterday, raising their view of world No.1 miner Barrick Gold.