Posted on 06/24/2010 11:35:02 PM PDT by Jet Jaguar
Gold dropped on Friday as early buying linked to crumbling stock markets subsided, but a rise in ETF holdings to a record high indicated persistent worries over the global economy.
Investors were also looking to the Group of 20 summit this weekend in Toronto, where leaders from rich and developing nations will discuss how to plot the world's emergence from the worst financial crisis since the Great Depression.
But any disagreements over the best way to ensure both growth and fiscal responsibility add to global economic uncertainty, which dealers said could lift gold's safe-haven appeal.
Spot gold fell 70 cents to $1,243.35 by 0549 GMT, having hit an intraday high of $1,245.85, heading for a weekly loss of nearly 2 percent from a record $1264.90 hit on Monday.
Gold gained nearly 1 percent toward $1,250 on Thursday as U.S. stocks tumbled.
"There's still a lot of uncertainty toward a recovery. That's why they are putting their bets into gold," said Wong Eng Soon, investment analyst at Phillip Futures in Singapore, referring to investor interest in exchange-traded funds.
Gold was still consolidating after hitting an all-time high this week but a correction was unlikely to send the price below $1,225 an ounce, said Wong.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust (GLD.P) said its holdings rose to a record high at 1,316.177 tonnes as of June 24 from the previous high of 1,313.135 tonnes set on June 22.
"Despite repeated setbacks, it is not looking all that bad for investors and speculators who are betting on rising gold prices," said Heraeus Precious Metals in a weekly report.
"At least the general environment has not changed much."
(Excerpt) Read more at reuters.com ...
Ping
Goldbug ping
I was thinking that we might see the low for this cycle on Monday on some weekend news that Germany PM Merkel officially tells Geithner to shove it, but $1224 just after the NYSE opened on Wednesday looks pretty double-bottomy. And if you don’t like that, then $1230 just as NYMEX opened on Thursday morning looks even more like a bottom.
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” leaders from rich and developing nations will discuss how to plot the world’s emergence from the worst financial crisis since the Great Depression.”
Just who the h-— do they think master-minded this fuster-cluck... and the Great Depression. But I’m sure they can come up with a solution.
Hegel would have loved this situation. When you control the thesis and the antithesis, the synthesis is a foregone conclusion.
Gold Spot price at 1251.30 right now.
On the other hand, I did buy a decent little piece of BGZ at $15, so at least I'm making money every time the Stock Market goes down.
On the other other hand, though, I may need to buy some UGL pretty soon -- even at these high prices, GLD has been setting up one heck of an Ascending Triangle since about May 10. Win some, lose some -- but an upside breakout could be explosive, with that big a Triangle serving as support.
I thought about pinging you on silver’s dollar drop from the highs, then figured, eh, he reads the charts too.
Hah, what situation are we in when goldbugs are cursing twenty-dollar up-days. Yeah I would have liked to be buying some double-long silver AGQ in the mid-17’s or so, and I still have some hope that Germany PM Merkel will pound her fist on the table at G20 like Patrick McGoohan did in the opening title of “The Prisoner” and I get my chance on Monday, but at this point, all it is, is hope. Once again, gold bottomed right on expiration day.
I'll never part with my base position in good old SLV, but Silver sure has provided ample opportunities to trade more aggressively for profit over the past six months. Not at the moment, though...
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