After brief and swift dives, Gold, Silver, and Platinum are up for a third straight day on speculation the recession will deepen, boosting the appeal of the precious metal as a store of value. Silver is back on the $13 level.
Even the Dow surge to the 7000 mark as bank stocks like HSBC (HongKong & Shanghai Banking Corporation) concluded the week with a better outcome.
“Gold continues to resist any sustained decline, bouncing back quickly from any minor sell off,” said Adrian Day, president of Adrian Day’s Asset Management in Annapolis, Maryland. “The fly in the ointment could be a sustained and strong, broad global stock-market rally which would calm some investors’ fears. There is little prospect of this on more than a short-term basis in my view, so we continue to be buyers on any dips.”
Gold futures for April delivery rose $6.10, or 0.7 percent, to $930.10 an ounce on the Comex division of the New York Mercantile Exchange. The price rose 3.1 percent in the previous two sessions. The metal is still down 1.3 percent this week.
Silver futures for May delivery climbed 27.2 cents, or 2.1 percent, to $13.215 an ounce. While the price fell 0.9 percent this week, it is still up 17 percent this year.
Gold’s gains were limited as the S&P headed for the biggest weekly increase since November, curbing investor demand for alternatives to owning equities. Earlier, the price slipped as low as $919.60.
The decline was a buying opportunity for investors who has been purchasing gold this week as the metal dropped to a one-month low $891.10 on March 10.
Gold may also benefit as an alternative to currencies. The Swiss National Bank said yesterday it was selling the franc, undermining the currency’s haven status.
China’s Premier Wen Jiabao said he is “worried” about his country’s holdings of U.S. Treasuries and wants assurances that the investment is safe. China is the biggest holder of U.S. debt.
“Should China or some other significant buyer of U.S. debt announce that they will no longer buy U.S. debt unless denominated in a non-U.S. dollar currency, gold is going to the moon,” said Tom Winmill, president of New York-based Midas Management Corp.
In 2008, Treasuries returned 14 percent while gold gained 5.5 percent as investors sought a haven from financial turmoil. Treasuries slumped 2.9 percent this year through yesterday. (quotes from Bloomberg)
Even the Dow surge to the 7000 mark as bank stocks like HSBC (HongKong & Shanghai Banking Corporation) concluded the week with a better outcome.
“Gold continues to resist any sustained decline, bouncing back quickly from any minor sell off,” said Adrian Day, president of Adrian Day’s Asset Management in Annapolis, Maryland. “The fly in the ointment could be a sustained and strong, broad global stock-market rally which would calm some investors’ fears. There is little prospect of this on more than a short-term basis in my view, so we continue to be buyers on any dips.”
Gold futures for April delivery rose $6.10, or 0.7 percent, to $930.10 an ounce on the Comex division of the New York Mercantile Exchange. The price rose 3.1 percent in the previous two sessions. The metal is still down 1.3 percent this week.
Silver futures for May delivery climbed 27.2 cents, or 2.1 percent, to $13.215 an ounce. While the price fell 0.9 percent this week, it is still up 17 percent this year.
Gold’s gains were limited as the S&P headed for the biggest weekly increase since November, curbing investor demand for alternatives to owning equities. Earlier, the price slipped as low as $919.60.
The decline was a buying opportunity for investors who has been purchasing gold this week as the metal dropped to a one-month low $891.10 on March 10.
Gold may also benefit as an alternative to currencies. The Swiss National Bank said yesterday it was selling the franc, undermining the currency’s haven status.
China’s Premier Wen Jiabao said he is “worried” about his country’s holdings of U.S. Treasuries and wants assurances that the investment is safe. China is the biggest holder of U.S. debt.
“Should China or some other significant buyer of U.S. debt announce that they will no longer buy U.S. debt unless denominated in a non-U.S. dollar currency, gold is going to the moon,” said Tom Winmill, president of New York-based Midas Management Corp.
In 2008, Treasuries returned 14 percent while gold gained 5.5 percent as investors sought a haven from financial turmoil. Treasuries slumped 2.9 percent this year through yesterday. (quotes from Bloomberg)
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