December 1st, 2011

Gold futures fell for the first time in four days after a report showed U.S. manufacturing expanded in November at the fastest pace in five months, damping demand for the metal as a haven.

The Institute for Supply Management said its factory index increased to 52.7 from 50.8 in October, with readings over 50 indicting expansion. Economists surveyed by Bloomberg projected 51.8. Gold jumped 3.7 percent in the previous three days, the longest rally in five weeks, after central banks from the U.S. to China moved to ease strains in the financial market.

“When people feel better about the economy, they’ll sell gold,” Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said today in a telephone interview. “We’re also seeing some profit-taking after gold rallied above its 20- day moving average” at $1,745 an ounce, he said.

Gold futures for February delivery fell 0.6 percent to close at $1,739.80 at 1:45 p.m. on the Comex in New York. Earlier, the most-active contract reached $1,758, the highest since Nov. 17.

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November 11th, 2011

Gold future traders and analysts are the most bullish in at least seven years as investors accumulate metal at the fastest pace since August to protect their wealth from a widening European debt crisis.

Twenty-one of 22 surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the third consecutive increase and the highest proportion in data going back to April 2004. Holdings in exchange-traded products backed by gold rose 27.5 metric tons this week, within 1 percent of the record set almost three months ago, data compiled by Bloomberg show.

Gold futures exceeded $1,800 an ounce for the first time in seven weeks on Nov. 8 and hedge funds are holding their biggest bet on higher prices since mid-September, Commodity Futures Trading Commission data show. The metal is rebounding after tumbling as much as 20 percent in three weeks in September on demand for what are perceived as the safest assets. Almost $9 trillion was wiped off the value of global equities since May and yields on Italian and Greek bonds rose to euro-era records this week.

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October 5th, 2011

Gold futures rose for the third time in four sessions on demand for a haven amid persistent concerns that Europe’s debt crisis will hinder the global economy.

Yesterday, Italy’s credit rating was cut for the first time in almost two decades by Moody’s Investors Service, which said that other euro-area nations ranked below the top Aaa level may have their grades lowered amid contagion from the region’s budget woes. Wheat and corn led a rally in raw materials on signs the U.S. may take more step to bolster a recovery.

“People are buying gold as proxy for fear,” Adam Klopfenstein, a senior market strategist at MF Global Holdings Inc. in Chicago, said in a telephone interview. “Also, the strength in the commodities pack is helping gold.”

Gold futures for December delivery gained $25.60, or 1.6 percent, to settle at $1,641.60 an ounce at 1:42 p.m. on the Comex in New York. Earlier, the metal fell as much as 1.2 percent.

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August 30th, 2011

Gold futures rose in New York on speculation that the Federal Reserve will ease monetary policy further to stimulate the economy, boosting the appeal of the precious metal as an alternative asset.

“We need to do more,” Chicago Fed President Charles Evans said today in a CNBC interview. The Standard & Poor’s 500 Index fell after a report showed confidence among U.S. consumers plunged in August to the lowest in almost two years. Gold has rallied 12 percent this month, touching a record $1,917.90 an ounce on Aug. 23.

“Classic flight-to-safety instruments are getting a bid today,” Adam Klopfenstein, a senior market strategist at MF Global in Chicago, said today in a telephone interview. “The inverse correlation between equities and gold will persist. Liquidity measures put the inflationary card in the picture. It’s the perfect storm to be long gold.”

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August 26th, 2011

Gold futures rose in New York for a second straight day after Federal Reserve Chairman Ben S. Bernanke offered no plan to provide further stimulus for the economy.

While Bernanke said the central bank has the tools to spur growth, he refrained from outlining a plan for a third round of so-called quantitative easing. The Fed pledged on Aug. 9 to keep the benchmark interest rate between zero percent and 0.25 percent through at least 2013 to help stimulate the economy. The next policy meeting is Sept. 20. Gold futures slumped as much as 11 percent in the three days through yesterday, after touching a record $1,917.90 an ounce on Aug. 23.

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August 22nd, 2011

Gold futures climbed to a record for the third straight session as mounting concern that the global economy is slowing amid debt crises spurred demand for bullion as a protection of wealth. Platinum rose to a three-year high.

German Chancellor Angela Merkel attempted to shut the door on common euro-area bonds as a means to solve the debt crisis, saying she won’t let financial markets dictate policy. The Federal Reserve holds its annual symposium in Jackson Hole, Wyoming, this week, amid speculation that it may signal a third round of asset purchases to boost the faltering recovery.

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August 10th, 2011

Gold futures gained for a third session in New York after the U.S. Federal Reserve pledged to keep its benchmark interest rate at a record low through at least mid-2013, boosting demand for the metal as a protection of wealth.

The Fed also discussed a range of policy tools to bolster the economy, fueling speculation the central bank may consider a third round of quantitative easing through bond purchases to revive a recovery described as “considerably slower” than anticipated.

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