Dube has established himself as one of the most destructive middle-order batters in the IPL, scoring 350 runs at a 170-plus strike rate
cricket6 hours ago
Analysts said a period of consolidation would be healthy for the market and provide a solid base for a march towards a record high of $850 an ounce hit in January 1980.
Simon Weeks, head of metals trading at Bank of Nova Scotia, said gold rose in early trade on a knee-jerk reaction after the U.S. Federal Reserve’s decision to cut rates, but later ran out of steam and there was not enough volume to justify high prices.
“Overall, I am sure it will happen but we just need to take a breather,” he said, referring to gold’s rise to $800. “With some people late to the party, I think that there are some longs to be squeezed out.”
Gold hit a peak of $799.30 an ounce, its highest since January 1980, before falling to $789.60/790.40 by 1507GMT, against $791.70/792.50 in New York late on Wednesday.
Oil fell more than $1 as investors cashed in on a new peak of $96 a barrel struck following a sharp fall in U.S. stocks and the U.S. Federal Reserve’s interest rate cut the previous day.
The euro dropped about half of one percent against the dollar to $1.4405 a day after it hit a record peak above $1.45 following the rate cut. The Fed said inflation risks were equal to the possibility of slower growth.
A firmer dollar makes gold costlier for other currency holders and often lowers bullion demand. The metal is also generally seen as a hedge against oil-led inflation.
“Gold continues to defy gravity with frothy crude and a wilting dollar helping sentiment,” said John Reade, head of metals strategist at UBS Investment Bank.
“But barring a rapid adjustment by the fundamental gold market, the metal looks set for a correction, although the timing of this is as impossible to predict as ever.
”With $800 very close and $850 very much in traders’ gun sights, momentum may take us sharply higher in the near term, but this will only make the correction all the more devastating when it does occur,” he said in a daily research note.
After adjusting for inflation, gold’s lifetime high of $850 is equal to $2,079 an ounce at 2006 prices. Prices have jumped 25 per cent since the latest rally began in mid-August.
Inflation concerns
But analysts remained convinced that the metal would hit new highs in the medium term.
Philip Klapwijk, chairman of metals consultancy GFMS, said inflation worries and a weak dollar were likely to push gold towards the record high of $850 in the first half of next year.
Dube has established himself as one of the most destructive middle-order batters in the IPL, scoring 350 runs at a 170-plus strike rate
cricket6 hours ago
Fraser-McGurk has blasted 309 runs in seven matches for the Delhi Capitals at a strike-rate of 235.87
cricket6 hours ago
The mayor of Seoul also extended a cordial invitation to the RTA to participate in the upcoming Seoul Smart Life Week
uae6 hours ago
The units are equipped to transform residences into golfing sanctuaries while eradicating the limitations of weather, seasonality and tee times
sports6 hours ago
When the Paris opening ceremony begins on July 26, it will be the first time the city has played host for a century after previous editions in 1924 and 1900
sports6 hours ago
This decision to invite players outside of the top 100 has precedents which is an interesting initiative to watch
sports7 hours ago
Saudi Arabia's Abdullah Al-Qahtani meets Morocco's Taha Bendaoud in the main event
sports7 hours ago
The airport will have a passenger capacity of 260 million per annum and fully absorb Dubai airport operations
business7 hours ago