Gold hits new high on India talk, weaker dollar (9th session of winning streak)

Marketwatch ^ | 11/25/2009 | Moming Zhou & Polya Lesova

[SeekAndFind]

Gold futures rose to a record high near $1,188 an ounce Wednesday, getting a fresh lift on reports central banks were in the market to buy bullion and as the U.S. dollar slid to a key level against the euro.

Also providing support, holdings in the biggest gold exchange-traded fund rose again.

Climbing for the ninth straight session, gold for December delivery rose as high as $1,187.50 an ounce. The contract ended up $21.20, or 1.8%, at $1,187 an ounce on the Comex division of the New York Mercantile Exchange. India, Sri Lanka

Analysts said speculation India could buy more gold, combined with a drop in the dollar, drove the day's action. Also, the IMF said it sold some gold holdings to Sri Lanka.

India's Financial Chronicle newspaper reported that the nation's central bank may buy the 201.3 tons of gold the IMF is selling on terms now being negotiated.

Such a purchase, if realized, would follow India's acquisition of 200 metric tons of IMF gold for $6.7 billion. That was almost half the total sales volume of 403.3 metric tons that the IMF's executive board approved in September.

Also Wednesday, the IMF said it sold 10 metric tons of gold to the Central Bank of Sri Lanka for $375 million.

Sri Lanka's purchase follows a small purchase by Mauritius's central bank of IMF gold. Other central banks, including in China, are also expected to add to their gold reserves.

"Strong investor demand is being buoyed by the structural shift we're seeing in the official sector," said Suki Cooper, a precious metals analyst for Barclays Capital.

For years, many central banks were net sellers of gold. "The fact that they've changed in sentiment, instead of selling gold are buying gold, has provided a huge lift to gold prices," she added.

[SeekAndFind]

SAME QUESTION -— IF YOU OWN GOLD NOW, DO YOU :

* BUY MORE

* SELL

* HOLD

[Lurker]

1200 dollars an ounce by next week. 1500 an ounce before Christmas. After that, it’s anyones guess.

[Lurker]

If you own gold? I’d be trading it for silver bullion at market prices. That’s a screaming bargain IMO.

[Tigen]

[Tigen]

[Wingy]

Look for gold to go to $1300-1350 before any correction. However if you want to wait around for 2.5 to 3 years, gold should be around $3100 to 3200. By then the Dow should be 2900 but silver will be $190-200. That's strictly by the charts, so add an upside fudge factor for human nature. USD verses other western currencies will be weaker but not by a dramatic amount. Against the yuan however I look for a four to five fold change with the USD on the weak side. Hold dollars and stocks at your own risk. Load up on stocks after 2013 with a different actor in the WH.

YMMV

[CapnJack]

“-— IF YOU OWN GOLD NOW, DO YOU :

* BUY MORE

* SELL

* HOLD”

BUY SILVER!

[webschooner]

IMHO ... Sell more US$ (trade for gold)

caveat emptor

[webschooner]

A Better way to look at it, IMHO:

IF YOU OWN US$, DO YOU:

*HOLD

*BUY MORE

*TRADE FOR GOLD

[Nam Vet]

A failure of the COMEX just might be happening as we speak. Friday trading will tell the tale. If only 11% of open gold contracts stand for delivery on monday, COMEX is OUT OF GOLD ! Silver is not much better. 26% delivery notice will break COMEX in silver.

Make no mistake....this really could be serious.

Nam Vet