Gold Prices $1,900
August 23, 2011 by staff
Gold Prices $1,900, Gold prices fell more than 1 percent from a record high on Tuesday as a recovery in the appetite for assets seen as higher risk, such as stocks, took the steam of a demonstration that many saw as exaggerated and over of 1,900 an ounce.
An increase in margin requirements for gold in front of Shanghai Gold Exchange also helped slows the rise of the precious metal burning.
Spot gold fell 0.8 percent to 1881.40 and an ounce at 7:03 am EDT, after touching a record high of 1911.46 and an ounce in Asia. The metal is still almost a third this year and is on track for its biggest increase since last September 1999.
Which rose sharply on the stock markets were battered last week by worries about the strength of the U.S. economy and the European banking sector stability, breaking above 1,900 and an ounce of more than U.S. talk monetary easing may be announced.
But it was unable to retain those gains.
“The sale is coming in feels much better quality than the purchase was taking. It’s a bit frothy around these levels,” said Simon Weeks, director of precious metals at Bank of Nova Scotia in London.
“We have the same old problems and I think gold still has a role to play as a currency in its own right,” he said. “But just as the world became too dependent on the U.S. dollar as reserve currency, I think we should exercise some care to be more self-sufficient in gold.”
“He has a role to play and do the will of a long time, but if that is in 2000 or not, and remains to be seen. I do not think that should be as high as it is now.”
The increase in margin requirements is also slow SGE any interest in the metal. Operators are seeing potential increases in U.S. Gold futures margins by CME Group, the latest increase prompting a price correction.
“It warns that the risk of margin increases CME is increasing, the SGE has announced increases in margin overnight for his contract to run,” said UBS in a note.
“But even if a withdrawal and 150 or more to materialize, would like to see as a good buying opportunity. In short, we believe that there is more than enough gold macro environment variables out there.”
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Fresh capital gains in the markets point to a rebound in risk appetite, while the cyclic products such as industrial metals benefited from the company data of Chinese factories and oil rose on the back of continuing clashes in Libya. . EU
German government bonds, which like gold are seen as a “safe haven” asset, also retreated from record highs.
Speculation is also rife that the Fed will make further stimulus when central bankers meet in Jackson Hole, Wyoming, later this week in response to the U.S. economy decidedly slow.
At the same meeting a year ago, Fed Chairman, Ben Bernanke, launched a second round of buying the bonds, known as quantitative easing, to revive the economy. The measure, which undermines the dollar, sparked a rally in gold.
St. Louis, James Bullard, president of the Fed told the Japanese newspaper Nikkei that the Fed could buy more bonds or take other action if the economy weakens, although the date is not yet adequate for the movement.
Among other precious metals, silver fell 1.9 percent to 42.90 and ounce, Spot platinum was down 0.5 percent to 1889.50 and an ounce and palladium rose counted 0, 2 percent to 759.50 and ounce.
The gold to platinum remained close to parity, a state in which he reached last week for the first time since December of 2008, gold traded increasingly strong compared to platinum.
Platinum, an industrial metal, is likely to struggle to buyers if growth slows, but remains close to three-year highs, benefiting from the strength of gold that is driving interest in the precious metals in general.
Rising gold prices relative to platinum also encourages more of substitution in the jewelry industry,anlysts said.
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