June 16, 2012
Gold futures rose, capping the longest rally in almost 10 months, on speculation that central banks will take steps to buoy economies.
The Bank of England yesterday unveiled measures to stem the escalation of Europe’s debt crisis as global policy makers prepare for the impact of Greek elections. US Federal Reserve officials may discuss stimulus efforts at a meeting on June 19 after jobless claims unexpectedly rose. The dollar fell against a basket of currencies for the fourth straight day, the longest slump since April
“People are gearing up for next week when they expect some form of easing to be announced,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “A weaker dollar is also pulling people toward gold.”
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Gold futures for August delivery rose 0.5 per cent to settle at $US1,628.10 an ounce at 1:40 p.m. on the Comex in New York. The price climbed for the sixth straight session, the longest rally since late August.
Central bankers from the U.K. to Japan and Canada stepped up warnings on the threat to world financial markets should Europe fail to contain its debt crisis.
Greeks vote on June 17 in an election that may determine the fate of the euro. The Syriza party has promised to renege on bailout terms proposed by the European Commission, European Central Bank and International Monetary Fund.
“Rather than an actual long play on risk, it’s people curtailing short positions because of uncertainties after the Greek election,” said Nikos Kavalis, an analyst at Royal Bank of Scotland Group Plc in London.
Silver futures for July delivery rose 1.2 per cent to $US28.74 an ounce. The metal climbed 0.9 per cent this week.
On the New York Mercantile Exchange, platinum futures for July delivery fell 40 cents to $US1,487.20 an ounce. This week, the price jumped 4.4 per cent, the most since late February.
Palladium futures for September delivery fell 0.7 per cent to $US630.40 an ounce on the Nymex.
Read more: http://www.smh.com.au/business/markets/gold-records-longest-rally-in-ten-months-20120616-20g6k.html#ixzz1y5UYsLJo