Gold Prices Fuzzy on Dollar
Source: The Street, Andrea Tse (10/22/10)
"Investors await meeting of G20 finance ministers, central bank governors in Korea this weekend."
Gold for December delivery was down 20 cents to $1,325.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Friday has traded as high $1,328.80 and as low as $1,315.60.
The U.S. dollar index was flat at $77.40 while the euro was up 0.9% to $1.41 against the dollar. The spot gold price was down $2.50, according to Kitco's gold index.
EverBank World Markets' assistant vice president Mike Meyer echoed the thoughts of many investors when he said, "I just don't understand how proclamations of a strong dollar, or at least one that isn't weakening, can even be discussed at a time when the Fed is talking about adding quantitative easing."
On Thursday, gold prices were falling as the jobs report came out better than expected, a number of positive earnings reports emerged and the broader stock indices rose. Stocks had ended higher in a volatile trading session.
"With risk appetite and investor confidence showing signs of returning, there is the risk of further profit taking in both gold and silver; however with background dollar weakness lurking, investor concerns about the long-term inflationary implications of QE (quantitative easing) and physical demand at its seasonally strongest, we expect dips to remain well supported and viewed as a buying opportunity," FastMarkets.com research analyst James Moore said in a daily report.
Silver prices were up 7 cents to $23.21, while copper was flat at $3.79.
Gold mining stocks, a risky but profitable way to buy gold were trading in mixed territory Friday morning.