Malaysia Gold Investment

The gold market is expected to open flat at begin of year 2010, based on overnight Globex trade. The dollar is weaker against most foreign currencies and the energy sector is trading higher. Speculative/ investment demand for gold bullion has slowed this month with gold prices down 6.3 percent for the month and down 9.7 percent from the peak at $1227.50. This also reflected in the stats from SPDR Gold Trust as the NAV has lost 3.873 billion dollars from the peak on December 2nd, an 8.8 percent drop. Gold has not been such a formidable investment for the month of December, even though record highs were posted on December 2nd. We have been guiding investors to hedge bullion holdings and/or ETF’s this month. Rebounds in the gold market should be limited to the $1135 – 1151 level, if gold decisively settles above 1170, short call option hedges should be covered. Expect gold to trade toward the 1055 level and possibly as low as 995 in the first quarter. The long term underlying support for ...

Due to USD become stronger gold price have drop to as low as USD 1,050 per ounce before a bounds back to USD 1,109. USD become stronger is just a temporary due to year end effect and this is a vary gold oppecunity to buy gold. China and India still buying gold so how come the price will drop more if they are still a lot of buyer. I think at 1Q2010 gold will go up hits back USD1200 and if it really happen gold price is on rally again to hits USD 1,400 by year end 2010.

Wish You All A Vary Happy Golden Christmas Holidays, All The Best In Investment.

Gold had fall and about to bottom as US dollar go higher but this only will last for above few week after that Gold price will up again due to fundamental US economic still weak. The big picture is not change, inflation, low interrest rates, more social programs, higher taxes, continued high unemployment, house defaults, bankruptcies, bank failures in the US. Once the short covering is over expect the USD to continue its downtrend.

Gold is directionless this morning, range-trading between $1,097 and $1,091, after a stronger US dollar weighed on precious metals in New York trade yesterday. Open interest on the February 2010 COMEX gold future decreased by 9,808 contracts yesterday—which also weighed on gold market sentiment. In spite of that however, the retracement in the gold price did appeared to attract new ETF inflows. Of note, the SPDR Gold Trust ETF, the biggest gold-backed ETF, increased its gold investment holdings by 215,171oz . Gold support and resistance are at $1,083 and $1,110, respectively, today. Gold has remained strongly correlated to the US dollar this morning, with the rolling correlation (on a 5-day basis) between the spot gold price and trade-weighted US dollar increasing from -0.88 yesterday, to -0.94 this morning. Yesterday US Q3:09 GDP and existing home sales data had impact on gold prices in NY trade, particularly the data had impacts significantly on the strength of the dollar.

Today's gold low at $1,111.60 confirmed two similar lows last Friday and Saturday, painting a double bottom of sorts. Gold is sawing between $1,128 and $1,115, going neither forward nor backward. Who knows, we might have already seen the bottom in Friday's crisis. Till January we may be plagued with a sideways market talking out of both sides of its mouth (that's the English translation of "equivocal"). Right now we can only wait for breakout one way or the other: over $1,128 and then $1,142, or below $1,110. In between lies merely consolidation & marking time.

Greece is struggling with its debt burden, reflected by Greece sovereign bond spreads having risen sharply in recent days. The euro may therefore continue to struggle. And so, we expect precious metals to struggle too. Friday's US data was very positive — especially consumer confidence data. However, we also see the rise in US business inventory in October as positive. It is the first time since August 2008 that US businesses have increased their inventories. Once businesses start to re-stock, the recession seems destined to end. With gold close to $1,110, we have seen some physical buying return. However, given that we expect headwinds for the euro, we still prefer selling into rallies. We see support at $1,110 and resistance at $1,142.

Due to USD value moving up gold price have drop from history high at above USD 1,220 per ounce. In its tumble since 2 December gold has already corrected most of its overbought-ness. However, the rally I was looking for Friday evening came overnight. Gold reached $1,142 but 8:00 a.m. Eastern then fell until noon and settled flatly around $1,115, where it languisheth still. At the Comex close (1:30 Eastern) gold registered $1,119.40, down $6.30. Because it is trading lower in the aftermarket, and because gold's low close at $1,120 has now been violated and see a correction below $1,050. Rest of the year gold will edge sideways and higher. After 1 January the rally should resume and carry to a high sometime mid-February to mid-March.

But what is driving the falls? Surely everyone can see the fundamentals behind gold? That may be, but short-term speculative capital does not care about long-term fundamentals. It is looking for quick gains and it appears to have driven gold into some kind of short-term, blow-off top. As we head into year end, there are a lot of fund managers who will want to lock in their profits for the year. I'm afraid that means they will sell their gold – and anything else they own that has done well – at the slightest hint of a turn in the markets, because they will want to secure their gains (and their bonuses) on what will have been an excellent year. That's what we saw on Friday and why the market fell so hard, so fast. In the short term, this does not bode well for any market – except one. It may be that we are finally seeing the end of the 'Great Reflation Trade', this astonishing rally out of the crash. For the large majority, locking in profits wil...

The correction in the gold market continued with a USD 12 per ounce drop. Now in US bank and report is speculated that the US unemployment rate is better enough to sell gold and buy into share market. Due to this action gold price is drop fast but US share market did not bounds up strongly. This may likely due to not mach investor follow or buy the US bank speculative on unemployment news. They know the big buyer China and India buying gold in November till now still did not get their gold yet. China and India is buying gold from US so this situation will cause investor to think that the quantity of gold stock in US it is right? By speculated the unemployment news, in US have cause some selling of gold scrap so this may help US to restore back some physical gold. Gold price had drop below the level during the Dubai news roll out and I think the panic selling likely to continues till end of this week before a bounds up show in gold price. The buying momentum in Asia still strong and re...

Low interest rates remain an important driver of liquidity, and hence the gold price. The Fed funds futures market continues to price no rate hike before June next year, assigning a 70% probability to rates staying between 0 - 0.25% until April 2010. However, beyond April, the probability of rate hikes is growing, with the futures market assigning a 57% probability for rates to rise towards 0.5% and higher by June 2010. There is a growing belief that rates in the US will be higher, sooner. While we do not see this as immediately bearish, we believe higher rates will slow the pace at which gold has been rising. In the futures market, we have seen a steady rise in gold’s speculative short positions. As of last week Tuesday, the noncommercial shorts stood at 106 tonnes on COMEX — the highest level since May this year. However, the shorts remain only a fraction of the longs. On non-commercial positions was 981 tonnes last week. Because of the rise in short positions, the net speculative lo...

Gold’s near vertical rise to new records is starting to puzzle many investors who are trying to square arguments fuelling its rise with seemingly conflicting moves in risky assets like equities or inflation-protected securities. This is not the stuff of a traditional gold rally, some argue, and suggests momentum alone rather than any watertight rationale is driving gold’s recent surge. The commonest answer to why gold has been rising has been that the dollar has been weakening, making the metal, which is sold in dollars, cheaper in other currencies and acting as a hedge for dollar investors. But the strong inverse correlation between the two is fairly recent. As little as six months ago it was not there. Even closer than that — in early October and early November — there were periods when the two failed to march in lockstep at all. So there must be something else at work at well, given that spot gold hit another record high, above US$1,226 (RM4,168) an ounce, yesterday. That w...

China Central Bank still waitting the gold that buy during last November and India is still buying gold in this month. However China Central Bank is thinks that gold prices are currently too expensive so I think the gold price correction is near and I think by or before Christmas gold will hits highest before the correction likely to begin.

Gold price is going up strongly on yesterday western time and after the market close Asia market also open in high price. Gold is monstrously overbought, which argues against more upward motion, but overbought can remain overbought for quite some time. How far or how long the price may hold no one will know, the market demand for gold is still high and the Gold buy from China and India for December is no yet deliver so the price may supported till end of this year is likely to happen. Public Bank Gold Investment Account as at 02/12/09 9:45 AM Selling Price Buying Price 1 gram RM 133.7000 RM 128.5200

US Gold Price drop almost USD 14.00 after the Dubai news roll out while Americans enjoyed their turkey dinners. However Asia Gold price is less effected by this news, like Malaysia gold price still at RM129 per gram. This morning the price go up to hits RM130 per gram and become history high. I think the gold price is still in bull run till end of December so same with share market because December always is the month where all is end well. Any bad news will bring to next year but Dubai debt news is a warning to all investor. Someone may roll out a negative news to drop the market in anytime to bring them profit so be-careful next year, a Tsunami may in the making.