Gold News

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.

Click here to get the "big picture" now...

Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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