Updated on: 21-07-2011
Gold Still Shiny more than ever above 1600
Explosive gold rally resumes with the precious metal trying to take out the record last set on 19/07 just shy of $1610 per ounce. The shiny metal climbed 33% vs. buck over the last year, which is more than any major currency.
Market participants usually buy it when cautiousness prevails for gold is presumed to keep its worth against cash. It is also bought as a hedge when inflation rises. For instance, when the Fed printed billions of dollars to buy government bonds, so many dollars were injected into the market, that the worth of the dollar declined and gold soared then. On account of that an analyst in an Asian investment trust said that now we had a similar situation as increasing the debt limit in the US means more dollars printed.
Meanwhile European leaders are preparing for their summit today. Last week the debt crisis pushed the Euro to a four month low, but it has recovered since then and now trading around $1.4270.
Global Equity Markets
Asia
Nikkey ended modestly higher with 0.04% gain. Hong Kong's Hang Seng is trading 0.06% higher.
Europe
Decent gains yesterday. Now most of the benchmarks are trading modestly lower.
U.S.
Indices ended a bit lower with 0.07%-0.12% declines of the S&P500 and the Dow respectively.
Commodities (prices from around 07:55 GMT)
Gold: working its way around $1600 mark.
Silver: consolidating around $40 mark at $39.67.
Oil: $98.20, a bit down.
Currencies
In spotlight: Never has the NZD traded higher than now vs. the U.S. dollar! New record for the Kiwi.
Economic Data
GBP has its retail sales at 08:30 GMT.
Some data from U.S. at 14:00 GMT: Leading Indicators, Philadelphia Fed.
Existing Home Sales disappointed yesterday with a lower than expected 4.77M reading. 4.9M was expected.
Check our new Eco Calendar for a more in depth review.
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