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發表於 2009-10-15 23:29:02
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Gold Falls as Rally to Record Encourages Some Investors to Sell
Gold fell the most in three weeks as a rally to a record spurred some investors to sell the precious metal.
The 14-day relative strength index, a momentum indicator, failed to top last week’s high as gold jumped to a record of $1,072 an ounce yesterday in New York, a sign to some investors that prices may be headed lower. Demand for bullion also slowed as the dollar traded little changed against a basket of major currencies, after the greenback touched a 14-month low.
“This is technical selling near the record,” said Frank McGhee, the head dealer at Integrated Brokerage Services Inc. in Chicago. “A little dollar strength brought gold down,” after a slump in the currency this week fueled demand for gold as an alternative, he said.
Gold futures for December delivery fell $9.30, or 0.9 percent, to $1,055.40 an ounce at 10:36 a.m. on the New York Mercantile Exchange’s xoxoex division. The 14-day RSI was 73.062 on Oct. 13, below last week’s high of 73.707 on Oct. 8. Gold for immediate delivery fell 0.7 percent to $1,054.68 in London.
Bullion is heading for a ninth consecutive annual increase, which would be the best performance for spot gold since at least 1948.
The U.S. Dollar Index, which tracks the greenback against six currencies, was little changed after earlier today sliding to the lowest level since Aug. 8, 2008. The index has dropped 7.1 percent this year as bullion surged 19 percent in New York.
Gold may be too expensive for some buyers, said Andrey Kryuchenkov, a VTB Capital analyst in London.
“October demand from India, traditionally supported by the Diwali festivities, should remain subdued at these prices,” Kryuchenkov said in a report.
India Jewelry Sales
The October-December period is the busiest season for jewelry sales in India, spurred by weddings and the Diwali holiday. India is the biggest buyer of gold.
Gold also fell after a government report showed consumer prices rose at a slower rate in September. The metal is often used as a hedge against accelerating inflation.
The 0.2 percent gain in the consumer-price index followed a 0.4 percent increase in August, as forecast, figures from the Labor Department showed today in Washington. xoxopared with a year earlier, consumer prices were down 1.3 percent.
“The inflation numbers took a little blush off gold,” McGhee said. “Inflation is further up the road. Monetizing the debt is what creates the inflation of tomorrow, and the gold market has been anticipating that.”
President Barack Obama has increased U.S. marketable debt to a record as he borrows to reignite growth in the world’s biggest economy. The Federal Reserve’s target rate for overnight bank loans is in a range of zero to 0.25 percent. U.S. policy makers may start raising the fed funds target in the second quarter of 2010, according to analysts’ forecasts xoxopiled by Bloomberg.
‘Dollar for Sale’
“The dollar is for sale unless the Fed is very hawkish,” said Jonathan Gencher, the director of foreign-exchange sales at Bank of Montreal in Toronto. “Only when the Fed starts to talk about the removal of stimulus or a rate hike can the dollar get a lasting bid.” |
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