Gold News

Gold rattles around $645 in New York

Gold rattled around the $645 mark in New York after closing London sharply higher from Monday's weakening prices.

"Gold is still trading in a broad range but overall, customers seem to be buying the dips," reckons one metals analyst. "The market is more inclined to move on the upside than the downside at the moment...

"The market had been testing the downside and when some natural buying came into the market, that pushed up prices."

Gold's failure to hold above $650 however – the level it broke on Thursday – may encourage short-term traders to quit the market for the time being, says Michael Widmer, director and head of metal research at Calyon in London.

Widmer also thinks traders will be watching for news of economic growth in the US this week. A slew of data is due on Thursday and Friday. Before then, the US Federal Reserve will announce its latest interest-rate policy at 19:15 GMT on Wednesday.

"Most gold investors will be focused on any signs of inflation," says Widmer. But don't wait for Dr.Bernanke to speak or for CNN to pick apart the personal income and spending data...jobless numbers and welfare claims...auto and truck sales...factory orders or hourly earnings reports.

The US money supply is rising faster than any time since 2001, back above 12% year-on-year according to one analysis today. With each Dollar losing value as the flood of new Dollars rises higher, gold remains the ultimate defence for investors against excessive growth in the money supply.

If you'd like to put a portion of your wealth into gold today – starting with a free gram of investment gold, vaulted in Zurich on your behalf right now – click here...

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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