Gold returns back above $1,000

The price of gold has touched $1,000 an ounce for the first time in six months.

The move could be seen as a sign that investors believe the worst of the global recession is over and are worried about inflation.

Others who are less convinced about the strength of the recovery are moving into gold, which is usually sought as a haven from economic turmoil.

Gold - seen as an attractive investment in times of inflation - has risen 13.6% in value this year.

'Uncertainty'

The US dollar - which often moves in the opposite direction to gold - has been declining during that same time.

"Gold's rising price is due to uncertainty all the way from personal investors right through to institutions," said Sandra Close, an analyst at Surbiton Associates."There are questions out there over the health of economies, where interest rates are going. All that encourages gold hoarding," she said.

Gold reached an all-time record of $1,032 an ounce in March 2008.

The commodity is measured and sold in troy ounces. One troy ounce equals 31.1035 grams or 480 grains. One troy ounce is equal to 1.09711 avoirdupois ounce - those widely used to measure weights in the US and UK.

Gold has risen for each of the past eight years.

Gold remains unchanged at Rs 15,700; silver coins rise

Gold maintained an unchanged level at Rs 15,700 per 10 gram as retailers and stockists refrained from buying at record high levels amid reports of the metal remaining high on the overseas front.

However, silver coins maintained an upward march in the national capital on sustained buying by stockists to meet marriage season demand on Friday.



Marketmen said there was hardly any worthwhile buying activity in the market as people postponed their decision of buying for the current marriage season.

Gold continues to lose shine

Persistent stockists offerings due to negative global advices, pulled down gold prices for the third consecutive day by another Rs 270 per ten grams to Rs 12,190 on the bullion market in Mumbai on Saturday.

Silver prices also dropped further on lack of industrial demand.

Gold prices fell sharply as a bleak U.S. jobs report led to a higher dollar, triggering wholesale liquidation across the board from stocks to oil and commodities.

A US government report showed that employers axed payrolls by 533,000 jobs in November, the most in 34 years and far more than expected.

According to report, job losses were widespread, hitting manufacturing, construction, retail, financial and other sectors.

Spot gold ended at $755.25 an ounce from Thursday's close of $765.70 an ounce.

Gold for February delivery dropped by $13.30 to settle at $752.20 an ounce on the New York Mercentile Exchange.

March silver lost nine cents to $9.43 an ounce.

In the local market, standard gold (99.5 purity) dropped by Rs 270 per ten grams to Rs 12,190 from Rs 12,460 previously.

Pure gold (99.9 purity) also fell to Rs 12,250 from Rs 12,520.

Silver ready (.999 fineness) moved down by Rs 110 per per kilo to Rs 16,525 from Rs 16,635.

India gold futures up on global cues

ndia gold futures opened higher on Monday tracking foreign markets, where the yellow metal gained due to a weak dollar and firm crude, but a strong rupee may cap gains, analysts said.

"The precious metals space is supported by the strong overseas leads but a strong rupee might cap the gains in gold and silver," said Harish Galipelli, head of research, Karvy Comtrade Ltd.

India imports most of its gold and pays for it in U.S. dollars and so the exchange rate plays an important role in determining local prices.

The rupee edged higher on Monday as a strong opening in the local stock market raised expectations of renewed capital inflows, with steps by the central bank to boost market liquidity also helping.

December gold is likely to trade in the range of 11,467- 11,770 rupees, said Pradeep Unni, senior research analyst, Richcomm Global Services DMCC.

December silver may be confined to 16,728 and 17,392 rupees, Unni added.

Open interest for December gold on MCX was at 8,912 lots, up from 8,842 a day earlier. Volume on Saturday was 1.81 kg.

Gold prices tumble

Gold prices failed to maintain its shine on the bullion market during the week on renewed offerings from stockists on the back of fall in overseas markets. Silver also dropped further on poor industrial demand coupled with negative global advi ces.

Gold prices headed for the biggest weekly loss in two months in London as equity markets rose around the world and crude oil prices declined, reducing demand for the metal as a haven and a hedge against inflation.

Yellow metal declined to a one-month low in New York on speculation that investors will sell the precious metal to cover losses in other markets. Gold futures for December delivery dropped to $787.70 an ounce on Friday on the comex division of the New Yo rk Mercantile Exchange.

The price slid 8.3 per cent from last week, the biggest such decline for a most-active contract since August 15. Silver futures for December delivery also declined to $9.335 an ounce.

Gold extends losses as oil drops; dollar weak

Australia - SINGAPORE, Aug 25 - Gold fell further on Monday, losing some of its safe-haven appeal as the U.S. dollar rose against other currencies, while a weaker oil also prompted investors to ditch their bullion holdings.
-- Gold fell to $821.05/823.05 an ounce from $827.00/828.60 an ounce late in New York on Friday, when it slipped more than $5 an ounce.

-- Gold futures for December delivery on the COMEX division of the New York Mercantile Exchange lost $6.8 an ounce to $826.70.

-- Sterling hit a two-year low against the dollar on Monday, extending its losses from Friday when data showed Britain's economy unexpectedly stalled in the second quarter, suggesting a recession could be looming.

-- Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand. -- Spot platinum was unchanged at $1,425.50/1,445.50 an ounce.

-- Spot palladium inched down to $283.00/291.00 an ounce from $285.00/293.00 an ounce.

-- Silver eased to $13.26/13.32 an ounce from $13.33/13.41 an ounce late in New York.

-- The most active Tokyo gold contract for June 2009 delivery on the Tokyo Commodity Exchange fell 17 yen per gram to 2,920 yen. Precious metals prices at 0017 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 819.80 -2.30 -0.28 -1.55 Spot Silver 13.26 -0.06 -0.45 -10.22 Spot Platinum 1425.50 0.00 +0.00 -6.22 Spot Palladium 283.00 0.00 +0.00 -23.10 TOCOM Gold 2919.00 -18.00 -0.61 -4.61 3685 TOCOM Platinum 4987.00 -99.00 -1.95 -6.59 2050 TOCOM Silver 471.20 -11.10 -2.30 -12.90 46 TOCOM Palladium 1017.00 -20.00 -1.93 -24.72 41 Euro/Dollar 1.4740 Dollar/Yen 110.07 TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce. (Reporting by Lewa Pardomuan; Editing by Anshuman Daga)

Gold Prices Fall for a Second Day in London as the Dollar Rises

Aug. 25 -- Gold fell in London for a second day as a rally in the dollar eroded the appeal of the precious metals as an alternative asset. Silver was little changed.

Gold, priced in dollars, often moves in the opposite direction to the U.S. currency. Bullion jumped 4.5 percent last week, the biggest weekly gain in six months, while the dollar index fell 0.5 percent. Oil dropped by more than $6 a barrel on Aug. 22, the most in percentage terms for more than three years.

``Gold is following the movement in oil, which fell sharply in New York last Friday,'' K.C. Wong, trader at Standard Bank Asia Ltd., said by telephone from Singapore today.

Bullion for immediate-delivery fell as much as 0.7 percent to $817.58 an ounce and was at $822.85 at 11:24 a.m. in London. Silver for immediate delivery traded at $13.39 an ounce, up 0.2 percent.

The dollar also rose for a second day against the euro on speculation a drop in oil prices will support the U.S. economy.

The dollar gained to $1.4767 per euro in London from $1.4793 in New York on Aug. 22. The U.S. currency advanced to 109.93 yen from 110.07 yen.

Gold has been supported in the first half by low levels of sales by central banks, Dan Smith, a metals analyst at Standard Chartered Plc in London, said in a report on Aug. 22.

``Latest figures show that in the 10 months to July sales were just 317 tons, which is equivalent to annualized total 380 tons,'' Smith said. ``This is well below the agreed ceiling of 500 tons per year under the Central Bank Gold Agreement and compares to sales of 476 tons in the previous CBGA year.''

Euro May Stall

Gold may rise for a second straight week on speculation the dollar's rally against the euro will stall, boosting the precious metal's appeal as an alternative investment, according to a Bloomberg News survey on Aug. 21 and Aug. 22.

Twenty-two of 28 traders, investors and analysts surveyed from Mumbai to Chicago advised buying gold. Five respondents said to sell and one was neutral.

Gold for December delivery was down 0.7 percent to $828.20 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange in London. Bullion for December delivery on the Shanghai Futures Exchange fell 2.4 percent to 182.17 yuan a gram ($827.26 an ounce).

In Japan, gold for June delivery on the Tokyo Commodity Exchange fell 0.7 percent to at 2,916 yen a gram ($825.08 an ounce).

Gold heads lower on U.S. dollar

SINGAPORE - Gold dropped more than 1 percent on Monday, losing some of its safe-haven appeal as the U.S. dollar strengthened against other currencies, but a steadier oil limited the falls.

Bullion could find support around $800 an ounce, with the help of buying from jewelers ahead of the festive seasons especially in main consumer, India. Dealers also reported tight supply for gold bars in Singapore and Hong Kong.

Gold slipped to $821.90/822.90 an ounce from $827.00/828.60 an ounce late in New York on Friday, but was off nine-month lows of around $773 hit in mid-August.

Earlier on Monday, the metal dipped to $817.05, down 1.2 percent.

"Gold remains relatively resilient against oil's volatile downward move. This may suggest that buying interest is surfacing just above $800," said William Kwan, bullion director at Gold Capital Management in Singapore.

Oil was steady above $115 a barrel, having fallen 5.4 percent on Friday, the biggest one-day drop in percentage terms since December 27, 2004, on easing supply concerns, but tensions between the United States and Russia would lend support.

Demand for gold in India normally picks up ahead of Diwali, the Hindu festival of lights in October, as people buy gold for auspicious reasons. Also, many Hindu marriages are likely to be held between September and November, said dealers.

"I guess the $800-psychological level support will come into play again. I believe physical demand for gold is likely to remain good and perhaps the shortage may support the market a bit," said Adrian Koh, analyst at Phillip Futures in Singapore."If we start moving below $810, we will probably move to $800 very soon and perhaps gold could retest to the $770s again," he said.

New York gold futures lost $7.0 an ounce to $826.50.

The dollar hit a two-year high against sterling after data last week showed Britain's economy was stalling, raising the prospect for monetary easing by the Bank of England.

Spot platinum dropped to $1,402.00/1,422.00 an ounce from $1,425.50/1,445.50 an ounce late in New York but was off an 11-month low around $1,296 hit last week.

"Near-term support for platinum should come in around the $1,350-level, and if we do move below those levels, we could see another bout of selling towards $1,250 to $1,300," said Koh of Phillip Futures.

In industry news, South Africa's Northam Platinum (NHMJ.J: Quote, Profile, Research, Stock Buzz) posted a 12 percent rise in earnings for the year ending in June, on high metal prices, despite weaker output. The miner forecast a rise in output and prices for the current financial year.

Spot palladium was steady from late New York levels at $285.50/293.50 an ounce. Silver fell to $13.31/13.36 an ounce from $13.33/13.41 an ounce late in New York.