Gold futures rose to a record $1,368.90 an ounce amid mounting investor demand for the metal as an alternative to currencies. Silver extended a rally to the highest level since 1980.
Goldman Sachs Group Inc., UniCredit SpA and Citigroup Inc. have raised price forecasts as the metal approached another record high. The dollar was down against a basket of six major currencies on speculation the Federal Reserve will ease monetary policy further to spur economic growth.
“Gold has become the world’s third reservable currency as all currencies seem intent upon racing each other downward,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. He advised clients to buy the metal.
Gold futures for December delivery climbed $20.80, or 1.5 percent, to $1,367.50 at 10:12 a.m. on the Comex in New York. The previous all-time high was $1,366 on Oct. 7.
Goldman Sachs forecast a price of $1,650 in 12 months. UniCredit analyst Jochen Hitzfeld in Munich raised his 2011 target to $1,500. Citigroup’s “short and medium term” forecast is $1,450.
“This momentum higher will attract investors to participate in the next move up,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland.
A Fed purchase of $500 billion of government securities would lead to lower interest rates, weighing on the dollar and aiding gold, Dincer said.
Treasury Purchases
The central bank in March finished $1.7 trillion in purchases of Treasuries, mortgage-backed securities and housing agency bonds. The Fed has kept its benchmark lending rate at zero percent to 0.25 percent since December 2008.
Gold, which pays no interest, becomes a more attractive investment when borrowing costs decline. Before today, the metal rose 23 percent this year.
“Both gold and the dollar agree that Ben Bernanke will be victorious in his quest to foment a robust rate of inflation,” said Michael Pento, a senior economist at Euro Pacific Capital in New York.
Gold for immediate delivery reached a record $1,367.95.
Silver futures for December delivery rose 50.8 cents, or 2.2 percent, to $23.655 an ounce. Earlier, the price reached $23.71, the highest level since September 1980.
Platinum futures for January delivery gained $23.30, or 1.4 percent, to $1,706.60 an ounce on the New York Mercantile Exchange.
Palladium futures for December delivery climbed $11.35, or 2 percent, to $592 an ounce.
http://jodnet.blogspot.com
Goldman Sachs Group Inc., UniCredit SpA and Citigroup Inc. have raised price forecasts as the metal approached another record high. The dollar was down against a basket of six major currencies on speculation the Federal Reserve will ease monetary policy further to spur economic growth.
“Gold has become the world’s third reservable currency as all currencies seem intent upon racing each other downward,” said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. He advised clients to buy the metal.
Gold futures for December delivery climbed $20.80, or 1.5 percent, to $1,367.50 at 10:12 a.m. on the Comex in New York. The previous all-time high was $1,366 on Oct. 7.
Goldman Sachs forecast a price of $1,650 in 12 months. UniCredit analyst Jochen Hitzfeld in Munich raised his 2011 target to $1,500. Citigroup’s “short and medium term” forecast is $1,450.
“This momentum higher will attract investors to participate in the next move up,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland.
A Fed purchase of $500 billion of government securities would lead to lower interest rates, weighing on the dollar and aiding gold, Dincer said.
Treasury Purchases
The central bank in March finished $1.7 trillion in purchases of Treasuries, mortgage-backed securities and housing agency bonds. The Fed has kept its benchmark lending rate at zero percent to 0.25 percent since December 2008.
Gold, which pays no interest, becomes a more attractive investment when borrowing costs decline. Before today, the metal rose 23 percent this year.
“Both gold and the dollar agree that Ben Bernanke will be victorious in his quest to foment a robust rate of inflation,” said Michael Pento, a senior economist at Euro Pacific Capital in New York.
Gold for immediate delivery reached a record $1,367.95.
Silver futures for December delivery rose 50.8 cents, or 2.2 percent, to $23.655 an ounce. Earlier, the price reached $23.71, the highest level since September 1980.
Platinum futures for January delivery gained $23.30, or 1.4 percent, to $1,706.60 an ounce on the New York Mercantile Exchange.
Palladium futures for December delivery climbed $11.35, or 2 percent, to $592 an ounce.
http://jodnet.blogspot.com
0 التعليقات
Post a Comment