Gold Price Will Supported Above USD1,000 Base On ETF Data

Gold garnered support after slipping from USD996 to USD982 in London trade yesterday with the price fall being seen as a buy opportunity. The greenback weakened further this morning, slipping from USD1.4571 to USD1.4629 against the euro, propelling gold from USD994 to USD1,003 in Asian trade this morning.













Elsewhere of note, ETF Securities Ltd’s gold investment holdings increased 48,393oz. Monitored investor holdings report from Goldessential.com, base on 10 monitored gold-backed exchange-traded funds were seen increasing 4.871 tonnes (156,615 ounces) or 0.31 pct in the week from September 4th up to September 11th, in-house calculations based on official data showed on Friday. Four of the ten ETF’s announced an inflow and five ‘no change’. One of the monitored ETF’s reported a decline in holdings over the reported period.

On the supply side, Statistics South Africa reported the country’s gold production contracted 7.6% y/y in July. Given abundant above-ground physical gold supplies globally, this doesn’t appear to have had a significant impact on supply just yet, though should production continue to struggle over the rest of the year it may lend support to prices.

Base on the report, Gold price will be supported and if it can hold above USD1,000 for this week so it will never trade under USD1,000 again till end of this year.

Public Bank Gold Investment Account as at 11/09/09 3:51 PM

Selling PriceBuying Price
1 gramRM 115.1600RM 110.6700

Comments

Post a Comment

Popular posts from this blog

Gold edges up on weaker dollar, dovish U.S. Fed policy bets

Image
 Gold edged higher on Monday, helped by a weaker dollar and expectations that the U.S. Federal Reserve will reiterate its dovish monetary policy stance this week. Spot gold was up by 0.1% at $1,943.58 per ounce. U.S. gold futures rose 0.1% to $1,950.10 per ounce. “Gold is firm on the basis that the Fed could adopt a further dovish message with respect to average inflation targeting,” said Michael Hewson, chief market analyst at CMC Markets UK. “If you want to have a policy of average inflation targeting, you’re going to have to go into detail as to how you are going to arrive at that particular outcome.” The dollar retreated on Mond ay, bolstering gold’s appeal for investors holding other currencies, ahead of the Fed’s policy decision due on Wednesday. “If inflation forecasts remain at 2% or below, this could offer gold a tailwind as the zero-yielding metal thrives in a low-interest rate environment,” said FXTM analyst Lukman Otunuga. Market participants are also wai...
Read more

For the gold price, two outcomes are possible.

Image
For the gold price, two outcomes are possible. First is a return to or near the April low ($1,277.40). Second is a drop to a lower low, $1,240 - $1,260. Yet a third possible outcome is that the June and December lows were not a double bottom and one further drop may come. I account that the least likely, and look for a low here by the end of the week, but I'm no more'n a nacheral born durnd fool from Tennessee, so what do I know?   You'd think that an institution charged with promoting the gold industry would produce reports that at least cast the best light on gold's prospects. You'd think wrong, if you're thinking about the World Gold Council. They've been negative on gold for, oh, the last 14 years or so. Today they issued a report that contained a nugget about Chinese business using physical gold as collateral for bank credit ($40 bn worth) but they managed to tease a gloomy forecast even out of this inventive monetary use. That and bad ...
Read more

The price of gold advanced as high as $1,603.40 per ounc

Image
The gold price broke out to a new all-time high above $1,600 per ounce Monday morning, rising for the eleventh consecutive trading session. The price of gold advanced as high as $1,603.40 per ounce before backing off to trade just the $1,600 level. The yellow metal gained on the back of a surge in borrowing costs for Italy, the latest European nation to see its bond market come under heavy selling pressure. The lack of a deal to raise the $14.3 trillion debt ceiling also helped boost gold prices. The eleven-day rise in the gold price is the longest winning streak since January of 1980. The gold price delivered another noteworthy performance last week, climbing 3.2% on its way to a series of fresh record highs. With Monday’s advance, the gold price extended its monthly and year-to-date gains to 6.6% and 12.5%, respectively. Last week’s two-day Congressional testimony by Chairman Ben Bernanke on the economy and monetary policy revealed that the Fed remains open to the...
Read more