The gold price
Gold falls away after minor rally - 14 December 2007
Gold prices eased down today (December 14th), having hit a two-week high yesterday, as traders took profits, the dollar came off lows and prices fell.
Yesterday saw a new rush to buy gold as the precious metal rose up toward November levels and struck $816.85 per ounce, but this morning spot gold was trading down around $810 per ounce before slipping further.
Fed rate cuts this week have helped the metal to stage a recovery, but today's drop-off has once again cast doubt over investor confidence in the metal, especially as the year end approached.
But Standard Bank analyst Walter De Wet said that the new credit availability would bode well for gold: "More liquidity means less demand for US treasuries, which should put the US dollar under pressure.
"Increased liquidity should improve the functioning of markets in Europe and the US and decrease the likelihood of a recession in the US. Overall, the move should be bullish for precious metals."
Yesterday saw a new rush to buy gold as the precious metal rose up toward November levels and struck $816.85 per ounce, but this morning spot gold was trading down around $810 per ounce before slipping further.
Fed rate cuts this week have helped the metal to stage a recovery, but today's drop-off has once again cast doubt over investor confidence in the metal, especially as the year end approached.
But Standard Bank analyst Walter De Wet said that the new credit availability would bode well for gold: "More liquidity means less demand for US treasuries, which should put the US dollar under pressure.
"Increased liquidity should improve the functioning of markets in Europe and the US and decrease the likelihood of a recession in the US. Overall, the move should be bullish for precious metals."
Goldbug, 14 Dec '07
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