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Amaranth Advisors, a big U.S. hedge fund, has told its investors to brace for huge losses as a result of its costly bet that natural gas prices — now at a two-year low — would rise. Some reports said the fund's losses could amount to $4 billion US."We anticipate our year-to-date losses might be in excess of 35 per cent as we near completion of the disposition of our natural gas exposure," the hedge fund said in a letter to investors obtained by several media organizations. Amaranth traders apparently placed hugely leveraged bets that natural gas prices would rise. Instead,...

Nickel prices took a severe beating in late trade at the London Metal Exchange on Monday, falling over $1,000 from Friday's kerb close. Three-months futures ended Monday's kerb at $27,600 per tonne, down $1,100, or 3.8 percent. Once selling began, the metal slipped into free-fall, traders said. "It was around $28,500, then on the next trade -- which was half an hour later -- it had gone down $300, then another $300." Volumes were tiny and support practically non-existent."It was trading one lot, then two lots, then one. There was a void underneath it," the trader said. Sellers may have...

Gold climbed to a seven-week high on Friday, powered by record oil prices and tensions across the Middle East, but surrendered half of the gains to profit-taking in later trade. Dealers said price dips would attract buyers, which in turn would arrest any sharp drop in prices."It’s a combination of things that’re keeping people a bit nervous and keeping gold perhaps little bit more buoyant than we would expect," said Tony Dobra, a director at Standard Chartered Bank in London. "Oil is up on political tension and so is gold. We saw yesterday a fall in the equities markets as...

With oil now hitting record highs and gold well off mid-May levels, the gold-oil ratio continues to shrink. Today, one ounce of gold only buys 8.57 barrels of oil - a ratio of 0.11.Oil hit a fresh record high of $75.78 a barrel today, boosted by strong demand in the United States and global tension ranging from Iran's nuclear work to North Korea's missile tests. Prices drew early support from a U.S. government report yesterday showing gasoline demand grew by 1.4% in the last four weeks from a year ago, with summer driving months still head. But rebel attacks in...

Gold rallied to a new 25-year high near $700 an ounce on Tuesday on dollar weakness, while platinum set a new record on strong industrial demand and fund buying. Other precious metals also gained from the bullish environment in commodities, which saw copper setting a new record and aluminium surging to an 18-year peak. "We have a combination of overlaying sets of momentum here. More and more of genuine investors have become convinced that some portion of their assets should be put into the sector," said Sean Corrigan, chief investment strategist at Diapason Commodities Management. "Clearly this is a very...

Gold futures surged above $660 an ounce Monday to their highest level in more than 25 years, as a weak U.S. dollar and concern about Iran's nuclear- research program fueled safe-haven buying and broad-based metals rally. "Sheer momentum, combined with a sliding U.S. dollar and heightened geopolitical concerns, greatly underpins the long-term direction for gold," said Peter Grandich, editor of the Grandich Letter, adding that while he believes a correction is "out there," he's not willing to predict it. Gold for June delivery climbed to a high of $663.80 an ounce on the New York Mercantile Exchange, a level the...

Gold bugs' only problem on Monday was trying to find which of a myriad of bullish factors to pick to explain yet another move to fresh 25-year highs. The usual suspects -- inflation, geopolitical tensions, and a weak dollar -- were all present at the open of trading after a three-day weekend. Most visibly, crude oil topped $70 a barrel amid heightened concerns about Iran's nuclear ambitions. In recent action, crude was gaining 68 cents to trade at $70 a barrel. Gold for June delivery was recently up $13 at $613.80 an ounce, off an earlier 25-year high at $614.30....

A HIGH probability of a sharp slowdown in US economic growth and a slide in the dollar are likely to continue driving investment in gold this year, says precious metals consultancy GFMS in its Gold Survey 2006, launched yesterday. The main reason for gold’s current strength is investment demand rather than jewellery manufacturing, says GFMS chairman Philip Klapwijk. Inflationary pressure and political tension in the Middle East should also boost demand for gold. As the gold price performed well, it would attract new investors. “We’d only need to see a tiny slice of mainstream assets diverted into gold, which comparatively...

February gold climbed $4 to $558 an ounce in New York, trading as high as $559.50. Prices found support from a weaker dollar, which lifted investment demand for the metal. But "the real driver of the gold price continues to be lack of selling, leaving a small volume of investment/speculative buyers calling the shots," said Julian Phillips, an analyst at Goldforecaster.com. And "with a huge number of buyers waiting for lower prices, this price looks like it will consolidate around $550 to $565 or run still higher this week," he said

Gold futures climbed over 1% Friday to touch their highest intraday level since March 1981, primed for a gain of almost $15 an ounce for the week ahead of what will be a holiday-shortened trading session. Metals trading on the New York Mercantile Exchange will close Friday by 12:10 p.m. Eastern time ahead of Monday's Martin Luther King Day holiday. Gold prices were poised to end the week higher after closing out last week at $541.20. Gold for February delivery traded as high as $557.30 an ounce in New York. It was last up $7.20 at $556.50, trading nearly 3%...

Gold scaled a new near-25-year peak on Monday as fund managers poured money into the metal due to worries about inflation and dollar weakness against the yen, dealers said. Market talk that some central banks might buy gold to increase the metal's share in their reserves boosted sentiment. Gold also gained in other currencies. In trading Monday, gold was at $537.9 an ounce on the New York Mercantile Exchange. Earlier, in Asian trade, the precious metal briefly hit prices not seen since March, 1981. "In the near term, we are very close to an important level of $550 (an ounce)...

Gold has long been valued, and not just for its beauty. The metal is also valuable for its resistance to chemical reactions, and for its electrical qualities. But some people have always valued gold most as an investment, even without any guarantee of growth in its value. For years, gold prices fell. Now gold is in the news because prices have risen to their highest levels since the early nineteen eighties. Gold is trading above five hundred dollars a troy ounce, about thirty-one grams. There seems to be no simple explanation for the increase in gold prices. Experts say investments...

Gold advanced as investors bought the precious metal on expectations that price gains will extend into this year and on demand from Asian jewellers. Gold for immediate delivery rose as much as $8.60 to $520.60 an ounce. That's the biggest intraday percentage gain since December 28. Gold for delivery in February rose as much as $3.30 to $522.20 an ounce in after-hours trading on the Comex division of the New York Mercantile Exchange. The precious metal last year had its fifth annual increase in 2005 after reaching a 24-year high of $541 an ounce on December 12 as investors diversified...

LONDON: Heavy demand for gold from Russia, China, India, the Middle East and possibly the United States is likely to push the price up to a record high of $650 an ounce by the end of 2006. In the United States, where demand for gold is about half that of Europe, concern about the impact of the changeover at the millennium boosted gold demand in 1999, and fear could at some time be a factor again, Frank Holmes, chief executive of US Global Investors, said this week. "If fear takes hold the price of gold could jump faster than people...

Gold prices rose Monday, hitting fresh 24-year highs as investor interest in the yellow metal booms. On the New York Mercantile Exchange, spot gold was up $7.70 at $527 an ounce in morning trading. In European trading, spot gold rose as high as $541.30 an ounce. Spot gold is trading at levels not seen since 1981. Traders said the contract is testing resistance at $541.80 and $543.20, and that resistance would likely be a short-term top followed by a dip to $523.10 and $531.00. Long-term charts say that if the contract breaks through $543.20, however, it would be going for...

The price of gold has continued to rise in Asian trading, climbing to its highest level since 1981. Gains came despite concerns that the market may be set for a correction and some analysts are now predicting that prices have even higher to go. Precious metals have been given a boost as investors look to protect themselves against higher inflation and weakening currencies such as the Japanese yen. Gold climbed as high as $522.70 an ounce, before falling back. It was hovering around the $521 mark during afternoon trading in Asia. 'Dizzy high' "There's some profit-taking now, but look at...

The price of gold passed $500 an ounce last week, its highest level since the late 1980s. This is either an ominous development—or it isn't... If you'd lived a century ago, gold would have been the basis of your money. Great Britain dominated the global gold standard; its currency, the pound, was freely convertible into gold... On April 5, 1933, President Franklin D. Roosevelt ordered Americans to surrender their gold coin; the country effectively went on a paper-money standard... Higher demand collides with constricted supplies; wham, prices rise... Gold is an unending mystery, because its value lies less in what...