Gold Price Toes the Currency Line
Source: Gold Investing News, Kishori Krishnan (5/15/09)
"Gold is somewhat following the currency market right now."
Gold was little changed on Friday in Tokyo, just off a six-week high hit earlier this week, torn between a soft dollar and firmer equities. On Thursday, gold for immediate delivery was at $924.40 an ounce. The metal rose to $930.90 an ounce on Wednesday, the highest since April 1.
Spot gold was steady at $925.90 per ounce in early afternoon, compared with New York's notional close of $925.35, and was poised for a 1% rise on the week. U.S. gold futures for June delivery fell $1.8 or 0.2% to $926.60 per ounce, after rising $2.50 on Thursday on the COMEX division of the New York Mercantile Exchange.
"Gold is somewhat following the currency market right now," said Dick Poon, a manager at Heraeus in Hong Kong, referring to firmness in sterling and euro against the dollar.
Gold holdings in the SPDR Gold Trust increased for the first time since April 9 to 1,105.62 metric tons. Platinum was at $1,107.50 an ounce from $1,111.00, while silver was at $13.89 from $13.94 and palladium was at $222.50 against $220.50.
In India, gold prices surged to a three-week high of Rs 15,080 per 10 gram in the bullion market on Thursday, on sustained buying by stockists and jewelry fabricators to meet the current marriage season demand. Gold, which remained on an upward march since the last three days, added another Rs 110 to Rs 15,080 per 10 gram.