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Gold rallies as US dollar slips
By resourceINTEL · September 3, 2009 · 8:53 am · Leave a Comment
GOLD futures reached their loftiest point in nearly three months overnight as the US dollar slid, prices moved above important technical-chart levels and participants bought the metal in a flight-to-quality bid on economic uncertainty and concerns about the equities market.
December gold gained $us22, or more than 2.3 per cent, to settle at $US978.50 an ounce on the Comex division of the New York Mercantile Exchange. The contract hit $US981.40, its highest point since June 5.
“It’s primarily pent up demand,” said Michael Gross, broker and futures analyst with OptionSellers.com. “We had a down day in the dollar and the bulls used it as an opportunity to buy.”
In recent trading, the ICE Futures US dollar index was down nearly 0.5 per cent.
George Gero, vice president with RBC Capital Markets Global Futures, noted steady fund buying.
“Technicians and momentum traders find few sellers in (a) light volume upswing as new haven thoughts appear,” Gero said.
Tuesday’s slide in equities lent fuel to gold’s rally. Participants bought gold as a safety asset with last year’s stock market slide in mind.
“It’s got a few people rattled,” Gross said.
Carlos Sanchez, associate director of research with CPM Group, said support also came from economic-concern-fueled safe-haven buying after jobs data…read more at The Australian
