Gold spot price ranges
USD: 652 – 639.00
NZD: 871.00 – 851.00
NZDUSD: .7576- .7703
Yet another busy week, with a big range of movement on the currency front. We experienced a large drop midweek, primarily because of a release by the Reserve Bank explaining their reasoning for the intervention in the NZD exchange rate, and strong talk from the Bank of Japan regarding the carry trades. This then picked back up and we’ve seen record highs of over .77 in the last 24 hours. The expectation is the NZDUSD exchange is still going to keep climbing. The question is for how long? The effect this has on the gold price locally: gold is once again looking like the great currency hedge, despite the gold price increasing Thursday/Friday we’ve not seen much increase in the NZ price of Gold.
Gold has had an up and down week too, with the drop in price midweek, primarily caused by a drop in the oil price, and a move away from US investors to Treasury Bonds. This movement is being caused by better than expected economic data, but we still have more news coming this weekend, so things may change. However the oil prices increased last night, and with the prices being a their lowest point since January / February, a lot of physical buyers came back into the market yesterday, which has pushed the price back up to the mid 640’s with an expectation of a continued rise. The bargain buyers appear to be adhering to the old adage, buy on the dip.
Supply issues have been popping up again, with Russia announcing a 1% reduction in year on year supply, which coupled with the rumblings of the Labour strike in South Africa (which may still be on) and the worries about the declining production and increasing demand in Asia and the Middle East is likely to continue to be a long term factor in the prices.
A recent study by GNS Science and the New Zealand IER; has shown that there may be Gold deposits in the Far North (amongst $5 billion dollars of metallic mineral deposits) Coupled with the positive news from Heritage Gold of more finds in Waihi can only be good news for the local economy.
Looking for a way to use your gold? Have a look at the Emirates Palace Hotel. It cost more than $US3 billion dollars to build, with its golden rooftop domes to its gold-leaf lobby mosaics. The Flag poles are made of gold and the 1,002 chandeliers with Swarovski crystal made of, you guessed it, Gold.
At $US11,000 per night it rates itself as a 6 or 7 star equivalent “palace”.
And what would you wear to a place like this? How about General Ulysses S. Grant's sword at US$1.6m?
