Gold News

Gold Rises in Yen as traders square up for year-end

Gold closed today's Asian dealing up 2% for Yen investors from Friday last week, thanks to a dip in Japan's currency. Hot-money speculators, meantime, are still unwinding their gold bets ahead of year-end, leaving the metal to trade sideways in Dollars, Euros and Sterling.

"I think a lot of people are a bit long, that's why gold doesn't move much even though oil is getting higher," said a dealer in Singapore earlier. "Everybody knows there's going to be year-end book squaring. They want to keep gold below $650 until the end of this year, and you may see some selling-off. For me, $610 will be a good support."

On the foreign exchange markets, the Dollar was buoyed late Thursday by news that US jobless claims fell in the week to Dec.9. And Citigroup issued a note yesterday saying the US economy will accelerate in 2007. It sees the Euro falling to $1.26.

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Adrian Ash is director of research at BullionVault, the physical gold and silver 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 is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews.

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