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.

Oh really? For a detailed analysis of the US economy's near future, read the renowned Dr.Kurt Richebächer – click here now...

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 TheStreet.com 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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