weak us$ = strong gold

  1. 9,081 Posts.
    "Dollar fall supports gold - New York Bullion Report

    29th September 2003
    A stumbling Dollar has helped lifted gold in early COMEX trade after concerns about the greenbacks longer term prospects encouraged fresh investment interest. Trade across the European session was mixed, keeping the metal confined to a tight range between $379-80 while buying on the New York open lifted the metal to $382.50 before selling emerged. Gold managed to close above the key $380 level on Friday despite a brief dip to $379.00/40 after heavy selling was seen from all sides following the news earlier in the day that the Swiss National Bank intended to sell a further 284-tonnes (9.1M/ozs) during the next year as part of its ongoing sales program. The yellow metal closed the week at $380.60/1.00 after some short covering emerged around the lows and early Asian trade this morning has seen gold climb to $381.50 before encountering fresh selling. A sharp dip in the Euro from 1.1460 to 1.1400 on the European open has pushed gold back below $380 but scaled down buying continues to limit the yellow metal fall. Friday's CFTC data has seen another increase in the speculative longs, taking the net position to 335-tonnes long and although this is not the largest we have seen recently it is still rather hefty. Despite the pressure seen in gold over the past couple of days I still remains convinced that we will see a test of $400 before the year is out. Geo-political tensions continue to add to the metals safe-haven value while the investment community remain keen to add gold to their portfolios as the Dollar is set for further weakness whilst producer de-hedging programs continue to boost the metals fundamentals."
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