http://news.ft.com/cms/s/c299d256-bfcf-11da-939f-0000779e2340.html
Quote:
Gold hits 25 year high
By Kevin Morrison
Published: March 30 2006 10:39 | Last updated: March 30 2006 17:52
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Gold touched a 25-year high on Thursday with traders eyeing $600 a troy ounce as the next target level for bullion as investors piled into precious metals, pushing silver to a its highest for 22 years and platinum touched a record peak.
Gold reached an intra-day peak of $586.40 a troy ounce, its highest level since January 1981 and up $13 on the late quote in New York on Wednesday, before easing back.
?The bulls have now got $600 in their sights, so we are likely to see a run at that level because there is a lot of money coming into the market,? said one London-based gold trader.
Gold prices have risen more than 13 per cent so far this year, and have endured joyed their longest bull run since bullion was freely floated in 1968, even outlasting the bull run of the late 1970s, which culminated in gold peaking at more than $850 a ounce in January 1980.
Silver hit a high of $11.50 a troy ounce, its highest level since September 1983, and up 40 cents on the day. Silver has risen 13.5 per cent since March 21 when the US Securities and Exchange Commission allowed the American Stock Exchange to change its listing rules, to pave the way for a silver-backed tracker fund to list on the exchange.
Not to be outdone, platinum struck a record high of $1,090 a troy ounce.
Base metals were also firmer. The three-month copper price hit another record high for the sixth successive day when it touched $5,430 a tonne on the London Metal Exchange, the first time it has moved through the $5,400 level. Copper prices have risen 72 per cent since the start of 2005, onamid falling stockpiles of the metal as production growth is strugglesing to keep pace with demand.
The three-month zinc price hit another record high when it touched $2,677 a tonne. Zinc prices have more than doubled since the start of last year on dwindling global stockpiles of the metal as demand exceeds supply.
Oil prices were higher. IPE Brent for May delivery added 64 cents to $65.20 a barrel in late afternoon London trade. May West Texas Intermediate easedgained 10 cents to $66.55 a barrel in late morning trade on the New York Mercantile Exchange, extending the gains from the previous session.
Global wheat demand may fall as the spread of bird flu slows consumption of poultry feed, the International Grains Council said in its latest monthly report yesterday. The world is forecast to consume 611m tonnes of wheat in the year ending June 30, 2007, a drop of 9m tonnes from the previous year, the council said.
Wheat output in the year ending June 30, will be 616.5m tonnes, 1.5m tonnes higher than previously forecast, it added.
Very interesting investment opportunities. As I posted some months ago, high energy prices and record prices in copper, gold, silver and other commodities will continue to boost emerging markets equity. The currency markets didn't react to the increased interest rates spread, so dollar is likely to depreciate, thus leveraging euro denominated holdings.
From a political point of view, these high commodity prices are likely to reflect increased geopolitical concerns. Middle-east, Nigeria and Gazprom being the most problematic issues.
Quote:
Gold hits 25 year high
By Kevin Morrison
Published: March 30 2006 10:39 | Last updated: March 30 2006 17:52
gold bar
ADVERTISEMENT
Gold touched a 25-year high on Thursday with traders eyeing $600 a troy ounce as the next target level for bullion as investors piled into precious metals, pushing silver to a its highest for 22 years and platinum touched a record peak.
Gold reached an intra-day peak of $586.40 a troy ounce, its highest level since January 1981 and up $13 on the late quote in New York on Wednesday, before easing back.
?The bulls have now got $600 in their sights, so we are likely to see a run at that level because there is a lot of money coming into the market,? said one London-based gold trader.
Gold prices have risen more than 13 per cent so far this year, and have endured joyed their longest bull run since bullion was freely floated in 1968, even outlasting the bull run of the late 1970s, which culminated in gold peaking at more than $850 a ounce in January 1980.
Silver hit a high of $11.50 a troy ounce, its highest level since September 1983, and up 40 cents on the day. Silver has risen 13.5 per cent since March 21 when the US Securities and Exchange Commission allowed the American Stock Exchange to change its listing rules, to pave the way for a silver-backed tracker fund to list on the exchange.
Not to be outdone, platinum struck a record high of $1,090 a troy ounce.
Base metals were also firmer. The three-month copper price hit another record high for the sixth successive day when it touched $5,430 a tonne on the London Metal Exchange, the first time it has moved through the $5,400 level. Copper prices have risen 72 per cent since the start of 2005, onamid falling stockpiles of the metal as production growth is strugglesing to keep pace with demand.
The three-month zinc price hit another record high when it touched $2,677 a tonne. Zinc prices have more than doubled since the start of last year on dwindling global stockpiles of the metal as demand exceeds supply.
Oil prices were higher. IPE Brent for May delivery added 64 cents to $65.20 a barrel in late afternoon London trade. May West Texas Intermediate easedgained 10 cents to $66.55 a barrel in late morning trade on the New York Mercantile Exchange, extending the gains from the previous session.
Global wheat demand may fall as the spread of bird flu slows consumption of poultry feed, the International Grains Council said in its latest monthly report yesterday. The world is forecast to consume 611m tonnes of wheat in the year ending June 30, 2007, a drop of 9m tonnes from the previous year, the council said.
Wheat output in the year ending June 30, will be 616.5m tonnes, 1.5m tonnes higher than previously forecast, it added.
Very interesting investment opportunities. As I posted some months ago, high energy prices and record prices in copper, gold, silver and other commodities will continue to boost emerging markets equity. The currency markets didn't react to the increased interest rates spread, so dollar is likely to depreciate, thus leveraging euro denominated holdings.
From a political point of view, these high commodity prices are likely to reflect increased geopolitical concerns. Middle-east, Nigeria and Gazprom being the most problematic issues.
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