Gold Heads for Quarterly Gain
Source: Bloomberg, Nicholas Larkin (6/30/10)
"Gold headed for biggest quarterly advance since the end of 2007."
The European Central Bank said it would lend banks 131.9 billion euros ($161.5 billion) for three months, less than some analysts forecast. Gold is headed for its biggest quarterly advance since the end of 2007.
"One of the reasons for gold being a bit lower is the European Central Bank" news, said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. "It's easing a little bit the fears of investors and therefore the appeal of gold as a safe haven."
Gold futures for delivery in August lost $3.30, or 0.3%, to $1,239.10 an ounce at 8:49 a.m. on the Comex in New York. Prices are up 11% this quarter. Gold for immediate delivery in London was 0.2% lower at $1,238.40.
"Demand for gold as a safe haven will remain strong, which should oppose any major declines in prices," Eugen Weinberg, head of commodity research with Commerzbank AG, wrote in a report. "Due to the currently high price level, profit-taking by short-term oriented investors is increasing."