The Gold Economy

After setting record highs  for two consecutive sessions, spot gold edged down 0.3 per cent to  $US1,581.66 an ounce,  as dashed hopes for additional US stimulus  measures took some heat off, although the euro zone debt crisis and  uncertainties on US deficit talks continued to support sentiment

After a nine-session winning run  pushed the price to an all-time high of $US1,594.16 on Thursday,  spot  gold was on track for a weekly gain of 2.4 per cent.

Gold dropped from its record $1,594.45 after Federal Reserve Chairman Ben S. Bernanke said that he’s not prepared to take immediate action… Continue reading

PRICES to buy gold bullion came within a few cents of $1595 an ounce Thursday morning London time – a new wholesale market record and a 7.8% gain from the July 1 low.

Gold bullion also set a Dollar record in Dollar terms at Thursday morning’s London Fix, at $1592.50 per ounce.

Silver prices rose to $39.39 per ounce – 16.3% up in the period since July 1.

Stock markets and US Treasury bonds fell meantime, while the commodities picture was mixed, after US debt ceiling talks

Increased speculation that the Fed may resort again to quantitative easing to boost employment , as a result of a saddening US jobs report, is the main reason why Gold on the Comex division of the New York Mercantile Exchange gained 0.8 percent on Friday.

Gold futures for August delivery were recently up $11.60 at $1,542.20 per ounce in New York. Trade has ranged from $1,525 to $1,546.

US non-farm payrolls delivered their weakest reading since September, with an increaso of only 18,000 last month, extremely below expectations of a 97,000 gain. The national unemployment rate rose to a… Continue reading

A rate hike from China which put inflation concerns back in the spotlight, and  worries over euro zone and US debt lifted the shiny metal’s haven appeal.

Spot gold was bid at $1 526,81 an ounce at 1343 GMT, against $1 515,70 late in New York on Tuesday, having fallen as high as $1 509,49. US gold futures for August delivery rose $15,10 at $1 527,80 an ounce.

“China has done a number of reserve requirement increases over the last several months — however, you have climbing inflation, so in real terms you are not making any money… Continue reading