Posts tagged gold

Gold Market News

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Gold has been souring in recently years.  Information about gold is very important. Here are a couple of articles that explain some reasons for gold fluctuating prices.

Asia, Europe, Gold, US Down As Citi’s Weak Secondary Reveals Limits To Liquidity

Was it the weak pricing of the Citigroup (C) secondary that reminded people that even with all the money pumping in the world, there’s technically not an unlimited amount of cash out there for the taking?

Possibly.

The market’s shown impressive resilience — ignoring Dubai, Greece, and Austria — all because it’s had faith in liquidity. That’s the one silver bullett that could kill the rally dead.    –more

De-hedging key reason for increase in gold prices

De-hedging by gold producers has emerged as one of the prime reasons for the rise in gold prices, analysts said.

A total of 105 tonnes of gold was de-hedged by producers in the third quarter of 2009 and it played a tremendous in raising the price of gold by nearly $50 an ounce. Though the volume of gold de-hedged – primarily by companies like global miner Anglo Gold Ashanti and Canadian miner Barrick Gold – in the final quarter of 2009 is expected to be large, no data in this regards is available as yet.

The bullion rose by almost $200 an ounce in the final quarter of 2009.

“De-hedging by miners is one of the prominent reasons for the rise in gold prices. The producers initially held their expected god production with an expectation that gold prices will fall in future. They then de-hedge when they expect prices to rise in future,” said Rozanna Wozniak , the investment research manager with the World Gold Council. “The amount of gold de-hedged by producers steadily rose from the first to the third quarter of 2009.”    –more

Related gold market articles

• Gold at 5000 an ounce? Don’t disgard it (telegraph.co.uk)
• Gold at $2,750 an ounce? Here’s how it could happen (dailyfinance.com)
• Buyers spurn gold for silver (telegraph.co.uk)