Wednesday November 18, 2009

COMEX gold futures trading over $1152 as prices hit new record highs

channelnewsasia.com :

The EUR/USD forex exchange rate rose above 1.49 on Wed 18 Nov 2009 as the US dollar, plagued by poor investor sentiment, pushed COMEX gold futures to new record highs. Prices in COMEX gold futures trading hit record highs over $1152 after setting a series of new records in recent weeks.

Due to currency exchange rate differences, a weaker USD makes dollar-priced assets such as gold cheaper for buyers using stronger currencies. Traders said the dollar's overall weak tone remained intact owing to the prospect of US interest rates remaining low for some time yet, as the Federal Reserve maintains its benchmark interest rates near zero. The US currency is now used for carry trades where dollars are borrowed at low rates to invest in higher-yielding assets overseas, increasing pressure on the US dollar.

- Commodities futures markets are getting lively as trading shifts to gold futures and by extension silver futures as well receiving steady inflows of money from investors and institutions alike, driving prices higher. Like many in the contrarian community, I have been looking for gold futures to hit local maxima of between $1100-1200, we'll see if that remains to be on track. COMEX gold trading volumes and prices may slow down a little when gold prices start to hit resistance levels, but where exactly that may be remains to be seen as we are now literally in uncharted territory.

See also :

1. Gold prices rise above $1000 level on overwhelming momentum
2. COMEX gold prices hit all-time record high of $1045 per ounce
3. COMEX gold prices hit new record high of $1061.40 per ounce in third straight session
4. NYMEX crude oil prices hit $80, gold prices trade near $1070.80 record high
5. COMEX gold futures price hits new record high over $1111 as Dow rises 200 points

(2009-11-18 22:50:00 SGT) [Biz] Permalink

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