Gold surges to new highs after Iraq find

Forbes Mag ^ | 1-16-03

[EggsAckley]

NEW YORK, Jan 16 (Reuters) - Gold stormed to its highest in almost six years on Thursday in New York, as jitters about another Gulf War mounted after the United Nations said it found empty chemical warheads in Iraq.

Gold was already on its way up before the news hit shortly after midday. At 1317 EST benchmark COMEX February gold was up $7 at $358.10 an ounce, topping at $359, the highest for benchmark gold since February 1997.

Spot gold jumped to $358.40, its highest since March 1997 and was last quoted at $357.20/8.40, up from $350.60/1.10 at New York's close on Wednesday.

Earlier on Thursday, Chief U.N. arms inspector Hans Blix said he would tell Iraq the situation was "very tense and very dangerous" and only fuller cooperation with his inspection teams could avert war.

Copyright 2003, Reuters News Service

[Support Free Republic]

Donate Here By Secure Server

Or mail checks to
FreeRepublic , LLC
PO BOX 9771
FRESNO, CA 93794
or you can use
PayPal at Jimrob@psnw.com

Become A Monthly Donor
STOP BY AND BUMP THE FUNDRAISER THREAD
Thanks Registered

[gnarledmaw]

Britain or Canada will now take advantage by dumping a huge chunk and drive the price back down.

[Semaphore Heathcliffe]

LOL. The Brits like to sell gold when it's in the gutter.

[Semaphore Heathcliffe]

fyi

[shrinkermd]

Comex Feb gold closed at 358.10, a new 6-year high. Last time it closed higher was on 3/4/97 at 360.50 (Apr contract). London will likely confirm tomorrow with a new 6-year high fix above the recent high @356.10 on 1/6/03.

[arkfreepdom]

Sell now. When the war is over...and it's getting close...it will fall.

[dirtboy]

Gold - that oh-so sensitive barometer of fear...

[glock rocks]

Hans Blix said he would tell Iraq the situation was "very tense and very dangerous" and only fuller cooperation with his inspection teams could avert war.

well thank goodness.

i was quite concerned that saddam wasn't going to get the message. well, blixboy,
how long should we wait for this epiphany to sink in? weeks? months?

gosh, do you think that now saddam will come clean? do ya?

[Momaw Nadon]

Attack on Iraq Betting Pool

[earplug]

What is the chance the the falling value of the dollar is pushing the price of Gold up? Our deficit and lack of exports might be the cause.
Any comment on how the California budget will effect the dollar?

[concerned about politics]

Sell now. When the war is over...and it's getting close...it will fall.

Crap-ola. We sold yesterday. Bummer. One more day and we could have held out for the cash. Drat!

[BlackJack]

Shanghai, Jan. 17 (Dow Jones) - Gold traded on China's sole precious metals exchange hit a record high Friday morning amid a shortage in supply, analysts said.

On the Shanghai Gold Exchange at 0240 GMT, the most heavily-traded gold bullion of 99.95% purity was quoted at a 95.32 yuan ($1=CNY8.28) per gram record high, compared with Thursday's close of CNY94.54/gram.

The remaining 99.99% purity gold hasn't seen any trade.

Gold prices in Shanghai have been hitting record highs almost nonstop recently and have jumped over 10% compared with their closing price Oct. 30.

Gains for Shanghai gold outpaced the rises overseas owing to producers' unwillingness to offer the metal, though China's gold has been tracking the international gold prices since the exchange was launched Oct. 30 last year.

"Domestic producers have been holding on to gold to wait for even higher prices," a local gold analyst said.

"Gold prices have been rising in overseas and domestic markets due to concerns over a (possible) U.S.-led war against Iraq," the analyst added. "Chinese producers have caught the point (on the war concerns) and cut their gold offering in order to create more profit after prices further strengthened by such an intended cut."



(MORE) Dow Jones Newswires

17-01-03 0317GMT

DJ China Gold/Record High -3: Gold Imports May Rise Soon



Another supportive factor was that China hasn't imported any gold since late last year.

Since the Shanghai Gold Exchange was launched, the central bank has yet to allow any domestic commercial bank to import gold, though it has withdrawn from the import business.

Up until the launch of China's gold exchange, China's central bank, the People's Bank of China, was the country's sole gold importer.

However, an exchange official in Shanghai said the central bank would have "no problem" in allowing local commercial banks to import gold soon.

China's gold consumption is believed by market participants to total around 200 metric tons a year, outpacing its production.

China's gold production in 2002 is estimated to have fallen to about 180 tons from 181.83 tons in 2001, due to the government's shutting down of small gold mines, analysts said.

The Chinese statistical authority hasn't released gold production figures for 2002.

China's gold market is off limits to foreign investors.

[WatchNKorea]

Sell now. When the war is over...and it's getting close...it will fall.

Incorrect. Gold will be above $500 an oz within a year. Perhaps as high as $525-$535.
Platinum should be over $850 this time next year. Silver should top $8.00 an oz.

[steve50]

Sell now. When the war is over...and it's getting close...it will fall.

The way the dollar is moving I'm not sure how much of an adjustment we will see. We've gone from a .97 to about 1.07 Euro in the last couple months. Dollars dropping like a rock because greenspawn has no way of propping up the market other than running the presses 24/7.

The "correction" in gold prices after the Iraqi move should be a pretty good time to load up on the yellow stuff, imo.

[arkfreepdom]

Guess we'll see. This is all like the talk in the 70's. Be careful.

[Dog Gone]

For all the talk about gold, there really isn't much demand for it among investors. Sales of American Eagle gold coins amounted to $140 million from September 2001 to November 2002, or less than the total takings of the movie "American Pie II."