Gold Price Nymex

Gold ends high figure in the purchase of investment funds

gold soars "> DiamondMkt.com – Reuters – NEW YORK / LONDON – Gold prices ended higher on Thursday but out of a record earlier in the session as strong purchases of mutual funds more than offset the news that central banks could withdraw liquidity financial system.

Bullion has gained nearly 40 percent year to date, driven by combination of central bank buying, the depreciation of paper money and inflation worries.

Andrew Montano, a director of bullion Headquartered in Toronto ScotiaMocatta distributor, said the investment flows in the gold market are driving prices to record levels.

"The physical gold remains piles in vaults. There are lots of accumulated metal in vaults owned traded funds and private funds, "said Montano.

Spot gold volatile spot, hit a record high of $ 1 226.10 an ounce, before falling as low as $ 1 203.90. It was at $ 1 216.95 at 3:03 pm EST (2003 GMT) off $ 1 215.90 late on Wednesday.

U.S. The February gold futures closed up $ 5.30 to $ 1 218.30 an ounce on the COMEX division the NYMEX.

Gold has risen as governments flooded the system with money to jolt the economy out of recession. However, markets Thursday are unnerved by signs that central banks may be tightening the money supply, traders said.

Federal Reserve Bank of New York held on Thursday a small operation to reverse repurchase agreement effective tool to test the drain. Traders said it was seen as the Federal Reserve to test the water withdrawal liquidity.

Furthermore, ECB President Jean-Claude Trichet, established a set of decisions to end the liquidity and hardening.

Late in the session, gold rose as the dollar weakened against the euro following Trichet's comments on possible exit strategies for flexible quantitative.

Saxo Bank senior manager Ole Hansen said a number of factors, including the central bank buys and fears about the foreign exchange markets were supporting gold. He said the metal was ignoring his technical indicators, as usual moves more above previous record levels.

"We are in new territory every time we make a new record, "said Hansen." It is easy to break a percentage, because there are no levels in search of resistance. "

Goldman Sachs said it expects prices to average $ 1,265 an ounce in 2010, reaching $ 1,425 an ounce in 2011. He said low U.S. interest rates support gold.

A survey of 33 analysts, traders and funds by Reuters this week that most people believe that gold prices are in a fix before end of the year, although the precious metal bull runs is still believed to be intact.

GOLD HITS Highs in euros, pounds

The Gold hit record highs in euro and sterling and the dollar. Euro price of gold hit a high of 812.43 euros an ounce, while gold called Sterling hit a high of 735.28 pounds an ounce.

Among other precious metals, silver was at $ 19.08 an ounce against $ 19.20.

Spot platinum was at $ 1 490.50 an ounce, against $ 1 500.50, while palladium was at $ 383.50 compared to
$ 387.50.

About the Author

Adam Schulman is a partner at Fusion Alternatives and Diamondmkt.com. With many years experience in the diamond industry spanning the entire spectrum of the diamond pipeline with multiple trading avenues on both the buy and sell side, Adam Schulman is one of a few experts in the world who has the expertise to provide unique diamond research and investment services in the emerging investment diamond market.

Previously at the Rapaport Group – the leading service and trading provider to the global diamond industry he was responsible for the international wholesale trading department of Rapaport encompassing both online and traditional diamond trading operations. The Rapaport Group manages both the Rapnet and Index online diamond trading platforms which are the leading ‘screen trading’ platforms for polished diamonds with daily listings of over 300,000 diamonds worth over $2.5 billion.

Adam may be contacted at info@diamondmkt.com or www.diamondmkt.com

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