Bloomberg.com

Gold Advances on Investor Demand for Haven, Falling U.S. Dollar

By Claudia Carpenter - Correspondent, ccarpenter2@bloomberg.net

Aug. 27 (Bloomberg) -- Gold rose in London on demand for precious metals as a haven from housing-related financial losses and an alternative investment to the declining dollar.

Gold extended its rebound from a nine-month low reached on Aug. 15. Demand for 1-kilo (2.2-pound) gold bars at the European refineries of Heraeus Holding GmbH has outstripped supply, with customers waiting as long as two weeks for delivery of orders, said Wolfgang Wrzesniok-Rossbach, head of marketing and sales.

``We had these housing problems three months ago but the price was still high,'' Wrzesniok-Rossbach said from Hanau, Germany. ``The problems are still there but the prices are much lower. This is why people have come in and invested their money in gold.''

Gold for immediate delivery gained $7.44, or 0.9 percent, to $832.34 an ounce as of 12:27 p.m. in London. The metal fell to $772.98 on Aug. 15, the lowest since Oct. 26, after reaching a record high of $1,032.70 on March 17.

The dollar fell from a six-month high against the euro today on speculation U.S. economic data will suggest the Federal Reserve will hold off raising interest rates.

Gold inflows of $306 million since the middle of July have led funds moving into the exchange-traded commodities of ETF Securities Ltd., the Jersey-based company said today in an e- mailed report. ``The consistently strong inflows into the gold ETC’s highlights investors' continuing interest in buying safe haven assets as global economic and financial conditions deteriorate and inflation remains high,'' it said.

Silver for immediate delivery rose 15 cents to $13.74 an ounce, platinum gained $14, or 1 percent, to $1,434 an ounce, and palladium increased $7.50 to $293.50.

Rhodium, used in autocatalysts, led the rebound in precious metals, gaining $200 to $6,200 an ounce, Johnson Matthey Plc said. Prices have climbed 61 percent in five trading sessions.

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by gold, was unchanged since Aug. 19 at 651.37 metric tons.

To contact the reporter on this story:
Claudia Carpenter in London at ccarpenter2@bloomberg.net

These articles are provided for informational purposes only and were obtained from publicity available sources on the Internet. These articles do not constitute financial advise or trading recommendations by Global Asset Management ("Global"). Global neither warrants the accuracy or completeness of the information contained in these articles, undertakes to update them, nor is it responsible for any omission or error contained in these articles. Viewers are encouraged to conduct, and should only rely on, their own independent research.
The purchase or sale of precious metals involves substantial risk and volatility. If you are contemplating purchasing and/or selling precious metals, you should consult with an independent financial advisor to learn about the inherent risks. Global does not render, and nothing in this website should be construed as, financial advise, a trading recommendations or a solicitation for the purchase or sale of precious metals.
 
 

Daily Chart : Gold

Daily Chart : Silver

Daily Chart : Platinum

Daily Chart : Palladium

 
 
 

Copyright © 1996-2010 Global Asset Management. All rights reserved.

2425 Hollywood Blvd. Suite 100. Hollywood, Florida 33020 :: info@globalam.net

phone: 954.921.1021 :: fax: 954.921.1536 :: toll free: 1.888.421.1021