Silver Futures Options Trading
CALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741
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Silver Futures Options TradingCALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741 |
Silver Futures Fall; Gold Declines to One-Week Low in London on Dollar’s Gain, China
March 9th, 2010Silver futures fell and gold declined to a one-week low in London as the dollar halted its decline and China said bullion probably won’t be the country’s main reserve investment. The dollar gained as much as 0.6 percent against the euro. Gold typically moves inversely to the greenback. The precious metal is “unlikely” to be China’s primary investment to diversify its reserve holdings because of price risks, said Yi Gang, head of the State Administration of Foreign Exchange. “The euro’s performance may drag gold down,” said Bernard Sin, the head of currency and metals trading at gold refiner MKS Finance SA in Geneva. “The news from China may put some pressure on gold in the short term.” Gold for immediate delivery lost as much as $8.32, or 0.7 percent, to $1,115.23 an ounce, the lowest price since March 2. The metal was at $1,117.20 at 11:31 a.m. local time. Bullion for April delivery was 0.6 percent lower at $1,117.30 on the New York Mercantile Exchange’s Comex unit. The metal declined to $1,120 an ounce in the morning “fixing” in London, used by some mining companies to sell production, from $1,125.75 at yesterday’s afternoon fixing. Spot prices are up 1.8 percent this year after gaining 24 percent in 2009, a ninth consecutive increase. Today is the one-year anniversary of a 12-year low for the Stoxx Europe 600 Index of equities, since when the index has soared 61 percent as governments and central banks around the world maintained low interest rates and committed more than $12 trillion to stimulate the economy. Chinese Impact“The size of the world’s gold market is small,” Yi said at a briefing in Beijing today. “China’s purchase will push up the prices. That will also hurt Chinese gold consumers.” Private holdings in China are more than 3,000 metric tons, he said.China increased its reserves by 454 tons to 1,054 tons since 2003, and has the world’s fifth-biggest holding by country, the administration said in April last year. China is the world’s largest producer of gold and the second-biggest consumer after India. “This may have a short-term negative impact on gold prices as one of the key reasons for the rally in the past year has been the expectation of central banks buying,” said Li Ning, an analyst at China International Futures (Shanghai) Co. “Medium to long term, gold continues to be supported by investors looking to hedge against weakness in currencies like the euro and the dollar.” Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by the metal, were unchanged yesterday at 1,116.12 metric tons, according to the company’s Web site. ‘Dip to Come’“These prices are not attractive enough for physical buying,” Sin said. “People are looking for a dip to come into the market.”Among precious metals for immediate delivery in London, silver fell 1.3 percent to $17.02 an ounce. Platinum slid 1.1 percent to $1,580.25 an ounce, and palladium dropped 3.5 percent to $456.35 an ounce. Platinum demand may outstrip supply by 68,000 ounces this year and a deficit may continue for the next few years, MF Global Ltd. analysts including Andrew Gardner said today in a report. Electricity shortages in South Africa are a “significant problem,” while the bank expects a recovery in the auto industry and continued investment demand through ETFs. - Glenys Sim in Singapore and Nicholas Larkin at Bloomberg. Click here for your Free Silver Futures Trading eGuide |
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