Gold comes off 2 week high as US crude fails to break above 60 USD

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Gold came off a two week high above 600 usd hit earlier as the precious metal, which has been strongly correlated with oil recently, lacked upward impetus after US crude prices failed to break above 60 usd.

Gold rallied earlier as strong physical demand emerged in Asia again and as more sabre rattling from North Korea over its nuclear ambitions sparked safe haven buying. The metal also found support from a modest gain in oil.

Oil edged up after the OPEC cartel agreed to slash output by a greater than expected 1.2 mln bpd in a bid to prop up oil prices, which have lost some 25 pct over the past 3 months.

Analysts said the failure of US crude to break above 60 usd on the OPEC news is taking the shine off gold. Rising oil prices increase the appeal of gold as a hedge against oil-induced inflation.

Strong resistance around the 600-608 usd level, which is the 'upside break-out level' on the charts used by technical analysts to forecast price movements, is also limiting gold's progress.

The dollar remained weak but analysts said this was failing to support gold as the metal has recently been taking its lead from oil rather than the dollar.

Declines in the dollar usually support gold as the metal is seen as an alternative investment to the US currency. Further, a weaker dollar makes gold less expensive for holders of other currencies.

金星

BY  在 2006-10-20 23:18 發表:

Gold came off a two week high above 600 usd hit earlier as the precious metal, which has been strongly correlated with oil recently, lacked upward impetus after US crude prices failed to break abov ...

thnx

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New Look

Tang

BY  在 2006-10-21 12:38 AM 發表:

New Look

by兄忽然愛打獵了？:D

BY

Tang  在 2006-10-21 00:40 發表:

by兄忽然愛打獵了？:D

不是打獵，是除暴安良。

BY

Gold fell in New York for the third day this week as some investors bet the rally to $600 an ounce yesterday was overdone.

Gold closed above $600 yesterday for the first time since Oct. 2. Speculative long positions, or bets that prices will rise, are at the lowest this year. The metal is down 18 percent from a 26-year high of $732 in mid-May.

A commodity analyst  said the speculative interest at $600 is rather cautious, the fund business migrates to other markets and away from the metals.

Hedge-fund managers and other large speculators decreased their net-long position in Comex gold futures in the week ended Oct. 10, according to Commodity Futures Trading Commission data.

Speculative long positions outnumbered short positions by 62,449 contracts on the Comex, down 10 percent from a week earlier.

金星

BY  在 2006-10-21 01:14 發表:

Gold fell in New York for the third day this week as some investors bet the rally to $600 an ounce yesterday was overdone.

Gold closed above $600 yesterday for the first time since Oct. 2. Spec ...

today is not a shopping day...