- Gold touched a bid high of $482.50 an ounce in Asian
trade on Thursday. SINGAPORE -- Gold rose to its highest level in nearly
18 years in Asian trade on Thursday, while platinum came to within $10
an ounce of $1,000 as fund managers bought heavily amid a surge of investor
interest in precious metals.
-
- Spot gold hit a bid high of $482.50 an ounce before easing
to $481.75/482.50 in afternoon trade, still up sharply from $478.25/479.00
last quoted in New York on Wednesday.
-
- "Gold will likely continue to benefit from growing
interest in commodities as a portfolio diversifier, but the flip-side is
volatility as funds inevitably switch between different alternative investments,"
Standard Chartered said in a note.
-
- "We expect gold to average $475 an ounce in 2006,
slightly higher than 2005, but short-term spikes are probable and the price
will likely breach $500 at some point," it said.
-
- Some dealers said gold could hit $500, a level last seen
in 1987, by the end of this year on fears about global inflation and heightened
concerns about geopolitical uncertainty.
-
- But others expected a volatile trade in the next few
weeks, saying gold could have trouble reaching that level because rising
prices are likely to curb demand for jewellery, especially in the main
consumer market of India.
-
- "It's very likely we'll test $485 today," said
Darren Heathcote, head of trading at NM Rothschild in Sydney. "I think
at $485, we'll probably see some selling pressure. We might see a retracement.
But
- I think the strong support would come around the $470
level."
-
- Fund-buying in Japan also lifted spot gold.
-
- October gold futures on the Tokyo Commodity Exchange
hit 1,867 yen per gram, the highest since January 1991.
-
- Dealers said gold is losing its tight inverse link to
the dollar, which has risen against major currencies this week on expectations
of more increases in U.S. interest rates.
-
- A strong dollar theoretically makes dollar-priced gold
more expensive to buy for holders of other currencies.
-
- Platinum rose to its highest in nearly 26 years, hitting
a bid high of $992 an ounce, and dealers said the metal was likely to test
$1,000 soon due to active buying by funds.
-
- Spot platinum had eased to $990/994 in afternoon trade,
but was still above $985/989 last quoted in New York.
-
- Traders are bullish on platinum after a report from refiner
Johnson Matthey on Tuesday said the global market should remain in deficit
in 2005, with prices ranging from $890 to $1,030 over the next six months.
-
- Sister metal palladium tracked gains in platinum and
rose to $258/262 an ounce, its highest since May 2004 and up from $255/258
late in New York.
-
- Silver rose to as high as $8.05 an ounce, the highest
since last December. The metal later traded at $8.02/8.04, up from $8.01/8.03
late in New York.
-
- http://www.gold-eagle.com/dmr2.php
|
