http://www.fastmarkets.com/scoop/?id=32559&v=0&lang=en&cid=142717&type=1
US GOLD - Comex gold races to new record, $1,700/oz now in sight
New York 03/08/2011 - Gold on the Comex division of the New York Mercantile Exchange set another all-time record on Wednesday morning as pessimism permeates most markets and traders take pre-emptive positions ahead of possible additional quantitative easing (QE) measures by the Federal Reserve.
Gold futures for December delivery were last up $25.20 or 1.5 percent at $1,669.50 per ounce and earlier hitting lifetime high of $1,675.90 for the most active contract.
The most recent spate of data has been quite poor. July PMI readings in the US, Europe and China have all disappointed while US personal income grew by only 0.1 percent in July on the previous month, while personal spending fell 0.2 percent.
“The data out there isn't really what's needed to let this economy turn around,” a US-based gold trader said. “Markets are being driven by fear as we've seen a number of recessionary figures come out lately.”
Given high unemployment rates and worries about near-term growth prospects, Fed chairman Ben Bernanke could hint at a third round of Treasuries purchases - or QE3 - at its annual meeting later this month, market participants said.
“My guess is that Bernanke will prime the pump for additional easing. Certainly, the gold rally we've seen the past couple days came about in part because people like me are pricing in some level of QE3,” the trader said.
Nevertheless, gold did come slightly off the morning’s highs after ADP Employer Services reported that US companies added 114,000 workers to payrolls in July. While this is still a weak number, it did beat expectations of 101,000.
“This didn't really have much impact as most folks are waiting for Friday's [non-farm] payrolls number, which most people think is going to be pretty stinky,” the trader said.
Meanwhile, Moody’s and Fitch ratings agencies have affirmed the US’ current AAA rating; however, Moody's has placed the US on a negative watch. S&P will make a decision on the country's debt rating by mid-October.
http://www.fastmarkets.com/scoop/?id=32559&v=0&lang=en&cid=142717&type=1
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
No comments:
Post a Comment