Gold leaps to end the week $20 higher
Gold leapt as London headed into the weekend, rising above $620 on the spot market and hitting $625 on the futures to close the week nearly $20 higher per ounce.
"The Dollar is losing ground on the currencies and gold is gaining on that," said Marty McNeill, a trader at R.F.Lafferty Inc. in New York to Bloomberg.
Oh really? Marty should check his gold charts again. For as BullionVault's chart show at a glance, gold shot higher against ALL major currencies on Friday.
Sterling buyers ended the week in London above £320 per ounce. Euro investors finished Friday above €483.
"We are positive as long as gold stays above $609-$610," said a precious metals dealer in London. He told Reuters that the break above $615 had triggered "technical buying".
But gold breaking above $615 didn't trigger much buying – "technical" or otherwise – on Tuesday or Thursday this week. And still the analysts remain fixed on the US Dollar!
"For the year, we would expect prices to benefit from a weakening of the Dollar," said Costanza Jacazio at Barclays.
"We didn't break down and always held up above $600 [this week]," added his counterpart at Dresdner Kleinwort, "despite oil coming under severe pressure."
He now reckons gold will trade in range between $600-$650 in the near term. If that's too volatile for you, we'd advise closing your ears to the noise and looking at the deeper trends in the financial world instead.
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