Buy e-gold
Sell e-gold
Gold rises as jewellers buy
Monday, November 20th, 2006 Posted in Gold News |
The upside target for gold is $640 and we should reach that level by the end of the year. It may even trade higher than that,” said the dealer, referring to a level last seen in September.
Source: FIN24
Gold rises as jewellers buy
20/11/2006 09:15
Singapore - Gold firmed on Monday after last week’s drop in prices spurred buying from jewellery makers in the run up to Christmas, while platinum reversed losses and gained nearly 2% on fund buying.
Spot gold hit a high of $624.50 an ounce (oz) and hovered at $622.90/623.90 by 05:23 GMT, higher than $621.10/622.10 late in New York.
Gold fell to ts lowest in nearly a week around $614 on Friday before bouncing back on a weaker dollar and as oil trimmed losses.
Darren Heathcote of Investec Australia in Sydney said: “Physical demand is there and it will help underpin it a little bit, but it’s probably not going to drive it higher.
“The real big movement is coming from the investment funds at the end of the day. We’ll probably find support around $614, with a cap for the time being probably somewhere around $625.”
Gold has lost around 2 percent in value since rallying to a two-month high of $636.50 on November 10 on a weaker dollar and news that China plans to diversify its foreign exchange reserves.
The dollar inched up up ¥117.90 from around ¥117.75 in New York on Friday, when it had fallen on soft US housing starts data and on rumours, later denied, that a US hedge fund was in trouble.
The euro was little changed at $1.2825.
Platinum rose to $1 207/1 212/oz from $1 185/1 191 in New York, driven by renewed buying from investors in Japanese futures as well as jewellers ahead of Christmas.
The metal tumbled to a two-week low of $1 138 on Friday as investors ditched the metal following a supply and demand report by Johnson Matthey, the world’s top platinum distributor.
Last week’s report said that supply and demand for platinum were likely to reach record levels in both 2006 and 2007, leaving the global market close to balance.
“This is a good time for jewellers to buy gold and platinum because they have to prepare for Christmas demand. That will offer good support for prices,” said a dealer in Tokyo.
“The upside target for gold is $640 and we should reach that level by the end of the year. It may even trade higher than that,” said the dealer, referring to a level last seen in September.
Benchmark gold futures on the Tokyo Commodity Exchange rose ¥13 per gram to ¥2 392 per gram, reflecting gains in cash gold.
Silver edged up to $12.80/12.87/oz from $12.75/12.82 late in New York.
Palladium was unchanged at $317/322/oz.
Print This Post