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Epic & Msn data
Epic GOLD
Time:
Mid Price: 1121.75
Change Today: -3.00 Descending
Change % Today: -0.27 Descending
Fifty Two Week High: 1212.50
Fifty Two Week Low: 870.25
Market Capital: 0.00
Period & price data
Period Price
Now: 1121.75
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: LME
Sector: General Mining - Gold
Epic: GOLD
News: Latest news
Web Site: GOLD
Other Articles: 17-03-201016-03-201016-03-2010

GOLD

Gold is a chemical element with the symbol Au and the currency code is XAU. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.

Wednesday, November 11, 2009

Gold chalks up another record high after US dollar hits 15 month low

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The Gold rally resumed once more on Wednesday as prices rose more than $15 an ounce, spurred on by the US Dollar’s seemingly endless decline, which continued today as renewed optimism over the economic recovery led to dollar selling. Investors moved away from the greenback in favour of more high risk, higher yielding assets.


As the Dollar fell to 15-month lows Gold pushed higher setting yet another record and was last changing hands at $1,117, meanwhile longer dated 2010 futures breached $1,120.


Following recent sentiment in the forex and commodity markets it would appear as though the Dollar is suffering from an unusual ‘catch-22’ predicament. Whilst generally maintaining traditional ‘textbook’ reactions to negative economic news, with a weaker dollar following poor consumer confidence data.


Similarly good news also weakens the devalued dollar; the newly created liquidity that’s sloshing around the financial system now seems to flit in and out of forex markets speculatively, undermining any dollar-specific positivity gleaned from many improvements to the US economic outlook.


The phenomena is the result of America’s historically low interest rates, which provide little in terms of speculative appeal compared to higher yielding currencies, commodities or equities following positive economic news.


It would appear that the aforementioned textbook may be re-written in the brave new-world that’s been created following the latest financial crisis, as the unprecedented ‘remedies’ may catch-out even the most hardy investment assumptions.


In London, Randgold Resources (LSE: RRS) was particularly strong this morning, advancing 6% while Russian focused gold and iron ore miner Petropavlovsk (LSE: POG) rose over 4%. South American focused gold producer Yamana Gold (LSE: YAU) and South African based Harmony Gold (LSE: HRM) both advanced 3%.


In the junior market the rally among non-producing explorers and developers was less pronounced. Fijian focused Vatukoula Gold (AIM: VGM) and Turkish based explorer Stratex International (AIM: STI) led the sector rising 3% each. Mariana Resources (AIM: MARL) and Tajikistan operating Kryso Resources (AIM: KYS) both climbed almost 2%, while Norseman Gold (AIM: NGL) and Central China Gold (AIM: GGG) approached gains of 1%.

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