Malaysia Gold Investment

The price of gold turned slightly lower on Tuesday amid strength in the U.S. dollar after policymakers in Europe came to their latest agreement on debt reduction deal for Greece.  After consolidating yesterday near the $1,750 level, the spot gold price fell by $4.26, or 0.2%, to $1,744.85 per ounce this morning. Gold prices showed a muted response to the latest development in the seemingly never-ending sovereign debt saga in Europe.  Earlier today, euro zone finance ministers and the International Monetary Fund (IMF) announced a series of measures that will reduce Greece’s debt load by €40 billion, with a target of reducing the debt to 124% of GDP by 2020.  Furthermore, policymakers agreed to lower the interest rate on official loans, extend the loan maturities by between 15 and 30 years, and include a 10-year interest payment deferral. While officials tried to spin the news as positively as possible, financial markets did not responds enthusiastically.  Moreover, se

The gold price climbed on Friday amid widespread gains in commodities and weakness in the U.S. dollar.  The spot price of gold advanced by $17.48, or 1.0%, to $1,747.55 per ounce, its highest level since October 17th. The U.S. Dollar Index, a trade-weighted composite of the greenback against several of the world’s most-traded currencies – including the euro, yen, and pound – fell by 0.4% to 80.361.  The SPDR Gold Trust (GLD), the world’s largest gold ETF and a proxy for the gold price, jumped by $1.75, or 1.0%, to $169.31 per share. Strategists at UBS discussed their outlook for the price of gold in a report to clients, published prior to today’s rally. The firm noted that “Gold is just a few dollars shy of its 50-day moving average sitting at $1,741, and more importantly, a key technical level lurking at $1,739.10…Our technical strategist notes that a break above this level, which is the month’s high, would be a crucial bullish development that would open up $1,748.95

A driving force behind the bull market in gold over the past several years remained in full gear last month, according to the International Monetary Fund (IMF). Earlier today, the IMF reported that Brazil, Kazakhstan and Turkey were the largest buyers of the yellow metal in October.  In total, over 40 tonnes of gold were purchased by central banks in the previous month. On a percentage basis, Brazil raised its holdings by the largest amount – 17.17 tonnes, or 48.6%, to 52.52.  Additionally, the purchase marked the first time that Brazil increased its gold reserves since June of 2005. UBS wrote in a note to clients that Brazil’s increase “is a chunky purchase by a central bank, and the gold market will likely sit up and pay attention to today’s news, not just because of its size but because this is a central bank that has not been active in the market for some time.” The firm went on to say that “We would not be surprised to see prices reach $2,200 per ounce. Sho

The price of gold oscillated between gains and losses on Tuesday as financial markets consolidated following yesterday’s broad-based rally.  The spot gold price held in a narrow range between $1,728 and $1,736 per ounce in overnight trading, while the U.S. Dollar Index stabilized near unchanged at 80.896. Gold prices showed a muted response this morning to the latest U.S. economic report, which showed that Housing Starts in October rose to a seasonally-adjusted level of 894,000 – well above the 840,000 consensus estimate among economists. Looking ahead, investors will keep a close eye early this afternoon on Ben Bernanke, who is scheduled to speak at the Economic Club of New York.  There, the Federal Reserve Chairman will deliver a speech enetitled “The Economic Recovery and Economic Policy” at 12:15pm ET. Jacob Oubina, U.S. economist at RBC Capital Markets, wrote in a note to clients that Bernanke is “obviously going to say the Fed will be as accommodative as po

The gold price rose for the fifth consecutive session on Friday despite a further advance in the U.S. dollar.  The spot price of gold climbed by as much as $6.09, or 0.4%, to $1,739.34 per ounce in morning trading while the U.S. Dollar Index added 0.4% to 81.087.  In doing so, the gold price reached a three-week high while the dollar hit its best level since late August. The recent strength in both gold prices and the U.S. dollar has coincided with a substantial risk-off phase in the broader financial markets.  Following Barack Obama’s successful re-election campaign, the focus in the U.S. has shifted toward the looming fiscal cliff.  When coupled with ongoing concerns over the European sovereign debt crisis, investors have been driven out of many risky asset classes such as stocks and commodities and into safe havens such as the yellow metal and greenback. Standard Bank noted in a recent report to clients that “In spite of dollar strength, the (gold) market appears

The gold price advanced modestly on Tuesday for a second consecutive session as investors awaited the outcome of today’s U.S. presidential election.  The spot price of gold rose $9.44, or 0.6%, to a high of $1,694.12 per ounce this morning while the U.S. dollar dipped 0.2% against a composite of foreign currencies.  The SPDR Gold Trust (GLD), the world’s most liquid gold price proxy, moved up by $0.85 to $164.08 per share. While many political issues may be heavily influenced by whether Barack Obama or Mitt Romney wins the election, the outlook for U.S. monetary policy is not one of them, according to Peter Boockvar – equity strategist at Miller Tabak and a contributor to Minyanville.com.  In a note this morning, Boockvar argued that with an Obama victory, monetary policy will stay the same, while a win for Romney will also not make a difference. “While Romney will likely replace Bernanke with a hawkish Chairman, Ben is still in place until January 2014,” Boockvar

The price of gold gave back its earlier small gain on Thursday after several better than expected economic reports in the U.S.  The spot gold price rose $5.91, or 0.3%, to an overnight high of $1,727.48 per ounce, but later fell back toward unchanged at $1,719.23.  In doing so, the gold price remained firmly in the $1,700-$1,730 range that is has occupied for the past two weeks. Across the Pacific Ocean, financial markets were impacted on Thursday by an encouraging report on the Chinese economy.  China’s National Bureau of Statistics reported that its Purchasing Managers’ Index – a key gauge of manufacturing activity – increased to 50.2 in October from 49.8 in September.  The figure represented the first reading above 50, the level that separates expansion from contraction, since July.  Furthermore, it was one of the few significant positive data points from China in recent months, as the nation’s economy has slowed considerably. While the gold price showed a sligh

The gold price advanced modestly on Wednesday alongside other commodities as U.S. financial markets reopened following two days of closures due to Hurricane Sandy.  The spot price of gold rose as much as $12.21, or 0.7%, to $1,722.47 per ounce after consolidating near $1,710 earlier this week in electronic trading.  Gold prices were buoyed this morning in part by moderate weakness in the U.S. dollar, which fell 0.4% against a basket of foreign currencies. Looking ahead to the remainder of the week, many market strategists expect trading volumes to be light as many individuals in the financial world remain unable to commute to their offices in New York City due to the subway system remaining closed.  City officials have yet to say when the subway system may reopen, but it is unlikely to be before Friday. Despite the substantial damage caused by Hurricane Sandy, the U.S. Labor Department affirmed that it will release the highly-anticipated October non-farm payrolls re