Gold creeps back up as markets doze - Friday 23rd November 2007
Investors have shown readiness to buy gold once more, as today's trade (November 23rd) saw spot gold prices rising steadily up toward the $815 mark.
A bearish few days had seen gold retreat below the $800 mark, prompting concerns of over-valuation, but a continuing fall in the value of dollar have made it an unmissable investment – especially outside of the US.
Slow Thanksgiving trade on Thursday spilt over onto today, with activity still light on the US market, while a public holiday in Japan also reduced the weight of trade.
However, less activity traditionally means greater price volatility, with gold responding by rising considerably from its late Thursday $803 levels.
With the greenback again falling against the euro, demand for gold from non US buyers was increased: the yellow metal is denominated in dollars and becomes cheaper for foreign buyers as the value of the dollar falls in relation to their currencies.
Barclays Capital analysts told Thomson Financial News that in current conditions, gold's prospects were good, explaining that while there could be short-term downward corrections "we would view these in the context of what remains a strong medium-term uptrend for gold".
A bearish few days had seen gold retreat below the $800 mark, prompting concerns of over-valuation, but a continuing fall in the value of dollar have made it an unmissable investment – especially outside of the US.
Slow Thanksgiving trade on Thursday spilt over onto today, with activity still light on the US market, while a public holiday in Japan also reduced the weight of trade.
However, less activity traditionally means greater price volatility, with gold responding by rising considerably from its late Thursday $803 levels.
With the greenback again falling against the euro, demand for gold from non US buyers was increased: the yellow metal is denominated in dollars and becomes cheaper for foreign buyers as the value of the dollar falls in relation to their currencies.
Barclays Capital analysts told Thomson Financial News that in current conditions, gold's prospects were good, explaining that while there could be short-term downward corrections "we would view these in the context of what remains a strong medium-term uptrend for gold".
Goldbug, 23 Nov '07
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