gold holds firm on ecb rate cues
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Gold holds firm on ECB rate cues

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Gold holds firm on ECB rate cues

London - Arabstoday

Gold prices held just below $1,530 (Dh5,619) an ounce yesterday as the European Central Bank raised its benchmark rates, having earlier hit fresh two-week highs as worries over the Eurozone debt crisis prompted buying. ECB chief Jean-Claude Trichet was due to speak at a news conference late Thursday, after the bank raised interest rates by 25 basis points as expected. Trichet\'s comments will be closely watched for any indications on the bank\'s policy intentions for the remainder of this year. Spot gold was bid at $1,526.79 an ounce at 1218 GMT against $1,527.50 late in New York on Wednesday. US gold futures for August delivery fell $2.40 at $1,526.80. Prices earlier climbed as high as $1,534.20 an ounce, their highest since June 23, recovering from two consecutive weeks of losses, before retreating in line with the euro. They have since steadied. \"The buying is currently always bigger than the selling, and therefore the moves are always more exaggerated to the upside. The market is seeking out bullish news,\" said ANZ Bank analyst Peter Hillyard. \"Situations like Portugal, what is continuing to happen in Greece... will be the bullish triggers that will take [prices] up.\" The euro remained lower on the day after the ECB rate hike, extending losses for a third day on expectations that worries about Europe\'s sovereign debt will take centre stage again. The single currency was under pressure earlier in the day after Moody\'s ratings agency downgraded Portuguese banks\' government-guaranteed debt after it cut the country\'s credit rating to junk the previous day. Concerns over debt levels in some smaller Eurozone economies, including Greece, Portugal and Ireland, were a key factor pushing gold prices to record highs above $1,575 an ounce in May. hile rising interest rates typically weigh on gold, expectations that the ECB will lift rates more quickly than the US Federal Reserve are supportive of the precious metal, which tends to benefit from a weaker dollar. \"We continue to consider the gold market to be \"under-bought\" relative to the level of US real interest rates, and expect current low real rates to motivate a rise in net speculative positions, providing support for a further rally in gold prices,\" Goldman Sachs said in a note yesterday. It added, however: \"We continue to expect gold prices to peak in 2012 as US real interest rates rise with the ongoing economic recovery, and the potential for US real interest rates to rise more quickly than we anticipate presents a downside risk to gold prices.\" On the supply side of the market, talks between striking Indonesian workers at the world\'s biggest gold mine and Freeport McMoRan Copper and Gold\'s management have broken down, leaving mining still halted, a government official said yesterday. Among other precious metals, silver was bid at $36.01 an ounce against $35.85. The gold:silver ratio — the number of ounces of silver needed to buy and ounce of gold stood at around 42.5 Thursday, well above April\'s 28-year low of 31.7, meaning silver has become less expensive compared to gold as prices of both have retreated. \"While we believe silver could continue to outperform other precious metals, we are concerned about persistent levels of volatility and damage to technical indicators and sentiment. Consequently, we maintain our preference for gold in the short term,\" said Morgan Stanley in a note. Spot platinum was bid at $1,719.49 an ounce versus $1,721.60, while spot palladium was at $767.72 an ounce against $762.48. Copper rose in New York on concern about supply stoked by adverse weather in Chile, the world\'s biggest producer of the metal, and a strike at the Grasberg mine in Indonesia. Chile predicted more bad weather for the Atacama Desert, where Codelco and BHP Billiton dig for copper. The Collahuasi mine was affected by snowfall along with Teck Resources\' Quebrada Blanca. That helped copper to rebound after slipping Thursday as China increased interest rates. \"The market is worried about supply, for the moment shrugging aside the increase in rates out of China [Thursday],\" said Robin Bhar, an analyst at Credit Agricole in London. \"That\'s really what\'s keeping the price elevated.\" Copper for September delivery advanced 3.1 cents, or 0.7 per cent, to $4.366 a pound by 8:33am on the Comex in New York. Prices reached $4.372, the highest level since April 25, and climbed for a sixth day. Copper for three-month delivery gained 0.7 per cent to $9,583 a tonne on the London Metal Exchange. Rain is also expected to affect Chile\'s Antofagasta region, where BHP operates Escondida, the world\'s largest copper mine. Output disruptions may worsen a projected shortage this year, estimated by the International Copper Study Group to be about 377,000 tonnes. From / Gulf News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gold holds firm on ecb rate cues gold holds firm on ecb rate cues

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

gold holds firm on ecb rate cues gold holds firm on ecb rate cues

 



GMT 11:03 2018 Tuesday ,23 January

No end to eyesores at Taj Mahal

GMT 10:18 2018 Thursday ,30 August

Iran incapable of closing Hormuz, Bab Al Mandeb

GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 04:53 2016 Monday ,16 May

English Premier League results

GMT 05:06 2024 Tuesday ,06 February

New hunt for flight MH370 gets under way

GMT 06:15 2018 Tuesday ,23 January

Volkswagen clinches record sales

GMT 13:13 2016 Wednesday ,14 December

Unarmed old man killed by police in California

GMT 15:00 2017 Wednesday ,08 March

1 killed, 2 missing due to Avalanche in French Alps

GMT 12:07 2017 Saturday ,25 February

Renault’s R.S.17 features Infiniti co-built ERS

GMT 12:52 2017 Saturday ,04 November

Belgium 'to study' Spain's EU warrant for Catalan leader

GMT 08:40 2017 Wednesday ,01 November

Miss Morocco launch her first charity program

GMT 16:26 2016 Friday ,04 November

All Black brothers in arms ready for rare double

GMT 08:21 2017 Saturday ,30 September

Al Sayed underlines economic improvement

GMT 10:27 2017 Wednesday ,13 December

Strikes kill 12 in rebel-run Yemen prison camp

GMT 10:52 2017 Saturday ,14 October

NGOs slam UN aviation agency plan
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice