Gold spot price ranges
USD: 662.60 - 677.50
NZD: 837.27 - 854.98
NZDUSD: .7862 - .7957
A very strong week for gold, the price has increased by 4% since the previous week. Again the main factors influencing the price - oil and the weaker US dollar.
Again the sub-prime lending market in the USA is causing issues, with Fed Gov Bernanke mentioning that the current sub prime losses are in the $50 - 100 billion range. The first major casualty being the Bear Stearns hedge fund essentually going bust. They alone controlled nearly 10 billion in mortgage related securities and credit derivatives.
Oil continues to rise, again because of a shortage of gasoline supplies in the US during the Summer driving season. Coupled with OPEC refusing to raise output, and Iran reducing the amount they export in August, this may continue to be an issue.
In New Zealand the exchange rate is still the talk of the town. With Dr Bollard possibly raising interest rates again, the expectation is for another increase in the exchange rate. However Dr Cullen may intervene, but that is yet to be seen... An indication of how the exchange rate is making the price lower in New Zealand - Since January the Gold price in US$ has risen by 7%. in NZ$ it has increased by only 2%. This is highlighted by the chart above I will extrapolate on it further next week.
Microphone Check : A sad story where John Laws of radio 2UE has had his Gold microphone stolen.
