Gold spot price ranges
USD: 653 – 669.00
NZD: 838.00 – 861.00
NZDUSD: .7842- .7878
USD: 653 – 669.00
NZD: 838.00 – 861.00
NZDUSD: .7842- .7878
Chart showing relative prices for Gold Spot in USD and NZD (NZD on left)
Gold has had a stronger week this week; primary factors are the rising oil prices and the weaker US Dollar. Currently it is trading above the upper resistance of US$665 with an expectation of further growth.
Oil prices are reaching record prices because of several factors: issues in oil producing countries like Nigeria (civil unrest and kidnappings), Iraq and Iran (continuing issues in Iraq, terrorism, American strength in the Persian Gulf increasing). US Gasoline shortages have corrected but now Crude is starting to become an issue. Market watchers in the past have explained that strong crude supports gold two ways - due to inflationary implications of higher energy costs, and because large speculators often move into metals at the same time they are going long in crude futures.
The other major influence on the gold price has been the US Dollar weakening. The Big issue here is the Sub prime lending market and the belief that this is going to continue to cause issues in the future. This has led to a significant weakening against the other major currencies – record high for the Euro - 1.3798 - and a 26 year high for the Pound peaking at 2.0134 early in the month. Gold often moves inversely to the dollar, with market participants seeking hard assets when the greenback is weak.
Locally we saw a drop in the NZDUSD cross earlier in the week (.772) but as you can see this has picked back up and is well on the way back to the previous record highs. Driving this is the high interest rates which are appealing for the global Carry trades. The expectation is here is for continued strength in the NZDUSD cross (also aided by the weaker USD), but the big question is for how long?
Gold has had a stronger week this week; primary factors are the rising oil prices and the weaker US Dollar. Currently it is trading above the upper resistance of US$665 with an expectation of further growth.
Oil prices are reaching record prices because of several factors: issues in oil producing countries like Nigeria (civil unrest and kidnappings), Iraq and Iran (continuing issues in Iraq, terrorism, American strength in the Persian Gulf increasing). US Gasoline shortages have corrected but now Crude is starting to become an issue. Market watchers in the past have explained that strong crude supports gold two ways - due to inflationary implications of higher energy costs, and because large speculators often move into metals at the same time they are going long in crude futures.
The other major influence on the gold price has been the US Dollar weakening. The Big issue here is the Sub prime lending market and the belief that this is going to continue to cause issues in the future. This has led to a significant weakening against the other major currencies – record high for the Euro - 1.3798 - and a 26 year high for the Pound peaking at 2.0134 early in the month. Gold often moves inversely to the dollar, with market participants seeking hard assets when the greenback is weak.
Locally we saw a drop in the NZDUSD cross earlier in the week (.772) but as you can see this has picked back up and is well on the way back to the previous record highs. Driving this is the high interest rates which are appealing for the global Carry trades. The expectation is here is for continued strength in the NZDUSD cross (also aided by the weaker USD), but the big question is for how long?
Interesting news: Remeber the shipwreck in the news recently? More developments in the sunken treasure world - Odyssey shipwreck intercepted by Spain
An interesting spin to the weekend barbie - Sizzle sausages on a gold barbeque
