Are markets indicating further strength in gold prices?
*Bloomberg, by Claudia Carpenter, July 30, 2009:
"Gold Advances in New York as Equities Gain, Weighing on Dollar
Gold rose in New York and London after two straight declines as rising
equity markets signaled increased willingness to take on risk, weighing
on the dollar.
The Dollar Index, a gauge of the currency’s value against six
counterparts, fell as much as 0.6 percent after adding 1.3 percent in
the prior two days, when gold dropped 2.5 percent. The dollar and gold
tend to move inversely. The MSCI World Index of shares rose as much as
0.7 percent after two losses in a row.
Gains in equities are a sign of 'falling risk aversion,' which
may reduce demand for the dollar, pushing gold higher, said Carsten
Fritsch, a Commerzbank AG analyst in Frankfurt.
Gold futures for December delivery climbed 0.6 percent to $935.50 an
ounce by 8:56 a.m. on the New York Mercantile Exchange’s Comex
division. Bullion for immediate delivery rose 0.4 percent to $933.67 an
ounce. The metal is heading for a weekly drop after two straight weeks
of gains.
'The dollar is likely to go lower, and thus gold higher today,' David
Thurtell, an analyst at Citigroup Inc. in London, said by e-mail."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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