Last week was a quiet week with the gold price ranging from $780 to $800, until Friday when the price jumped over 4% (the highest one-day increase since July 2006) to reach $829 before dropping back to around $826. The basic elements to the increase are the oil price ($98/barrel) and the weaker US Dollar.
From Bloomberg -
17 of 25 traders, investors and analysts surveyed by Bloomberg from Mumbai to New York on Nov. 22 and Nov. 23 advised buying gold, on speculation that a weakening dollar will spur demand for the metal. Six said to sell, and two were neutral. A good indicator that bullion market is at the beginning of a bull run.
Upcoming strike?
Four more deaths in South African mines in the last 5 days have led to further calls for a national strike starting December 4th. This will increase the upward pressure on the gold price as demand will be restricted in the lead up to the Christmas season, a time of year when demand for gold in jewellery increases in western countries.
Gold demand up by 13% in the Middle East
Demand for gold in the Middle East as an investment option is up 13% over the past year - in Dollar terms this is represents a 24% increase. The increase appears to be again based on investors seeing gold as a safe haven option.
Some one stole the fish
The main suspect of a 100kg old bar theft from a Japanese tourist centre has now been convicted of stealing a gold fish from a gold mine museum.
