Gold Rallies to Record in Best Run Since 1980
By Nicholas Larkin and Glenys Sim- Jul 18, 2011(Bloomberg)
Gold rose to a record above $1,600 anounce as debt concerns in Europe and the U.S. boosted demand for the metal as a protection of wealth. Bullion climbed to all- time highs in euros and pounds and silver topped $40 an ounce.
President Barack Obama is pressing congressional leaders for a multitrillion-dollar agreement in deficit-cutting talks as negotiators near an Aug. 2 deadline for raising the debt limit. A default would cause more panic than the collapse of Lehman Brothers Holdings Inc. in 2008,former Treasury Secretary Larry Summers told CNN in an interview broadcast yesterday. Treasuries rose and the euro fell amid concern European leaders will fail to stop the region’s spreading debt woes at a summit this week.
“The market is showing concerns that the debt problem is not going away,” said Bernard Sin,the head of currency and metal trading at MKS Finance SA, a bullion refiner inGeneva. “Investors are happy to accumulate and $1,700 is not difficult to achieve” by the end of the year, he said.
Immediate-delivery gold gained as much as $7.85, or 0.5 percent, to $1,601.40 an ounce and trade dat $1,600.95 by 11:40 a.m. in London. Prices are up for an 11th day, the longest streak of gains since July 1980. Gold for August delivery was 0.7 percent higher at $1,601.50 an ounce on the Comex in New York after reaching a record $1,601.90.
Gold is up 13 percent this year, heading for an 11th straight annual gain, the longest winning streak since at least 1920 in London. The MSCI All-Country World Index of equities gained 1.5 percent in 2011, the Standard & Poor's GSCI Index of 24 commodities is up 9.2 percent and Treasuries returned 3.5 percent, according to a Bank of America Merrill Lynchindex.
Record in Euros
Bullion rose to $1,598.25 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,587 at the afternoon fixing on July 15.
UBS AG’s Zurich sales desk on July 15 had the most gold coin demand since last summer, the bank said today in an e- mailed report. Bullion jumped to a record 1,141.42 eurosand 996.71 British pounds today after European Central Bank President Jean-Claude Trichet reiterated his opposition toany restructuring of Greek debt.
Euro-area leaders will meet in Brussels on July 21 to discuss the “financial stability” of the region, European Union President Herman Van Rompuy said July 15. The second summit in a month follows a worsening of the crisis that drove bond yields to euro-area records across Europe’s most debt-laden nations.
“The situation inthe euro area, as well as the proliferation of the debt-ceiling problemin the U.S., continues to be a very strong focus,” Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. (NAB), said by phone from Melbourne. “It’s difficult to see the problems and downside risk to global growth being less of a focus.”
Record Lows
Bullion almost doubled since December 2008 as the Federal Reserve kept interest rates at a record low and governments spent trillions of dollars to prop upthe economy after the worst global recession since World War II. The Treasury Department has warned the U.S. debt ceiling must be lifted by Aug. 2 to avoid default. Standard & Poor’s and Moody’s Investors Service are threatening to downgrade the government’s credit rating if Congress doesn’tact.
Holdings of themetal in exchange-traded products rose 0.6 percent to 2,101.9 metric tons onJuly 15, data compiled by Bloomberg show. That’s the highest level since December.
“As long as sovereign debt concerns continue to stimulate the fear trade, we are likely to see the fall-off in physical demand from Asia being somewhat offset by Europe,” said Edel Tully, an analyst at UBS in London. “These levels are now very attractive for scrap supply and indeed the market met a lot of offers.”
Silver at $40
Silver for immediate delivery climbed as much as 2.6 percent to $40.3175 an ounce, the highest level since May 4, and was last at $40.28 for a 30 percent rise this year. The best- performing precious metal in 2011 slumped as much as 35 percent from a record $49.79 an ounce set April 25 as Comex’s owner, CME Group Inc.(CME),raised the cost of making new speculative positions.
Palladium for immediate delivery in London gained 13 cents to $783.51 an ounce. It has fallen 2.3 percent this year after almost doubling last year. Platinum rose 0.1percent to $1,763 an ounce, and is down 0.5 percent this year. Platinum and palladium are mainly used in jewelry and pollution-control devices in automobiles.
Monday's market shows the panic of investors. global equity markets went down. Gold rockets up. As mentioned in this paper, American debt-ceiling and European sovereign debt crisis are the major concern of market.
Basically, there is one thing more interesting. The stress test in Europe showed 8 of 90 banks failed. However, this test is very tricky, because it did not include the sovereign debt crisis as the extreme case. So, this stress test was critisied as meaningless.
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Gold rose to a record above $1,600 an ounce as debt concerns in Europe and the U.S. boosted demand for the metal as a protection of wealth. Bullion climbed to all- time highs in euros and pounds and silver topped $40 an ounce.
President Barack Obama is pressing congressional leaders for a multitrillion-dollar agreement in deficit-cutting talks as negotiators near an Aug. 2 deadline for raising the debt limit.
the gold is a kind of scare resourse. As the standard of money, it could keep the balance the currency supply. The currency continue to increases ,however ,the yeild of the gold keep constant. According to the theory of supply and demand, the price of gold would be rocketed up.I think I just concern one aspect, that must has many other elements. It's a comprehensive and academic problem. As the gold stands for the factual values ,it can avoid risks ,especially the monetary uncertainty. 13#wangzhengily521
什么都破纪录呀Gold rose to a record above $1,600 anounce as debt concerns in Europe and the U.S. boosted demand for the metal as a protection of wealth. Bullion
bullion [ˈbuljən]
n.金条，银条
all-time
adj. 空前的, 全时工作的
immediate delivery
既期交易
COMEX
纽约商品交易所
MSCI
abbr.导弹状况控制指示器(=Missile Status Control Indicator)
abbr.摩根士丹利资本国际公司(=Morgan Stanley Capital International)
GSCI
高盛商品价格指数
proliferation [prəˌlifə'reiʃən]
n.增殖, 分芽繁殖,扩散
prop up
支持,资助
exchange-traded
交易所买卖
offset [ˈɔ:fset]
vt.补偿，抵消
UBS
abbr. 瑞士联合银行(总部所在地瑞士, 主要经营银行)(=United Bank of Switzerland)
palladium [pə'leidiəm]
n.[化]钯
n.守护神
platinum [ˈplætinəm]
n.白金
Mainly for the reason of protecting wealth, the prices of some precious metals climbed up both in USA and in Europe. Gold price reached its record high since 1980. Silver also climbed although it slumped after April. Palladium and platinum were also on the rise.
Most of the noble metals kept rising last year, but some of them dropped this year although rose again. There are still speculation motives behind the fluctuations of the metal prices.
The price of gold jumped above $1,600 an ounce for the first time Monday night as debt worries in the US and Europe continued to trouble investors. With the United States and Europe not yet resolving their debt problems, many investors prefer to own gold than investments denominated in the dollar or the euro.
Gold could be used to hedge risks, like inflation or devaluation of currency. However, in China, the transaction of gold is prohibited. What do you guys consider the alternative way to hedge your porforlio? How about real estate?
The aim of QE3 is to decrease the long-term interest rate, as the short-term one is close to zero. Accordingly, the interest rate parity indicates that lower interest rate leads to the depreciation of dollar. Consequently, investers try to avoid the financial products dominated by dollar. In this case, the gold is a good choice to hedge the exchange rate risk, and inflation risk as well
. 5# zhengwenyi 
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With the United States and Europe not yet resolving their debt problems, many investors prefer to own gold than investments denominated in the dollar or the euro.
in deed i don't like to take a risk but now i find investment can make a profit . fighting!!
