Gold Hits $600 For First Time In 25 Years

[Farma]

Source: http://www.couriermail.news.com.au/story/0...5003402,00.html

Gold hits 24y high

April 11, 2006

THE spot price of gold has broken through the $US600 ($824) mark for the first time more than 24 years in morning trade, but Australian gold miners have been slow to react to the milestone.

However, gold analysts are working on upgrading their forecasts for the price of the yellow metal this year after it peaked earlier than expected.

The spot gold price reached a high of $US600.40 an ounce - its best level since December 1980 - in Asian trading and by 1130 AEST was at $US598.75.

The only gold miner to ride the price rise was Thailand focused Kingsgate Consolidated, which picked up 26 cents to $4.38 by 1130 AEST.

Major players were lower with Newcrest Mining dropping three cents to $23.35 and Newmont Mining shedding three cents to $7.31.

Daiwa Securities analyst Mark Pervan said the market was cautious. "There is probably a little bit of caution - we could see some profit taking - these prices look pretty heady," he said.

"I think what the gold stocks are doing is taking a wait and see approach to see if it can consolidated above $US600 - that's why we are not seeing too much trade."

If the gold price could hold in the current range for two to three days it would probably cause a short covering rally, ultimately driving the price even higher.

Mr Pervan said he was now adjusting his gold price forecasts.

"I'll be looking at adjusting my numbers, and most likely higher," he said.

Research house Goldman Sachs JBWere yesterday increased its gold price forecast range for 2006 to $US550 and $US700 an ounce.

"We are of the view that the current surge in the oil price has rekindled fears of increasing rates of inflation and we still see gold as relatively inexpensive relative to other hard assets," Goldman Sachs said in a research note.

It said gold was also being driven by strong market fundamentals, including stagnant mine supply and strong investment demand.

Mr Pervan said domestic gold miners were also enjoying a booming market as the gold price in Australian dollars terms also continued to rise.

[geebee]

I am looking to invest in gold right now and have closely monitored its rise in price. However, my wife assures me that it usually drops considerably in the weeks after Songkhran. I trust her opinion but the price continues to rise and I'm starting to think that maybe I should just strike now. Can anyone tell me, can I really expect a significant drop over the next few weeks?

[kdvsn]

I am looking to invest in gold right now and have closely monitored its rise in price. However, my wife assures me that it usually drops considerably in the weeks after Songkhran. I trust her opinion but the price continues to rise and I'm starting to think that maybe I should just strike now. Can anyone tell me, can I really expect a significant drop over the next few weeks?

Trying to guess what's going to happen to the price of gold over a period of only a few weeks is very risky. A better question that what you think the gold price will be a couple of years from now. If you think that $600/oz will look cheap two or three years from now, then you might want to buy either some bullion or some gold mining stock.

[simcity]

I am looking to invest in gold right now and have closely monitored its rise in price. However, my wife assures me that it usually drops considerably in the weeks after Songkhran. I trust her opinion but the price continues to rise and I'm starting to think that maybe I should just strike now. Can anyone tell me, can I really expect a significant drop over the next few weeks?

thailand is a very small player on the gold market ! look more at china and india , time of the weeding and chinese new year !

Perhaps a lot of chinese people are waiting for the Yuan to sky rocket ( 5 % ) before to go into it .

Do not let you go down by one poster!

Buying gold is good if you can afford it! To have a % in your portfolio is advisable, if you heavy mortgage perhaps paying your mortgage first is better, to borrow to buy gold is perhaps not advisable!

Going into commodity is very rewarding, and left a lot of people bitter, the one who miss on it, and the one we got burn in the 80 and some other do not give a dame !

If you feel you will be happy to hold some gold or gold shares go ahead!

I am into it , and do not see the circle finish yet ! I am planning for 2-3 years with it !

Ok good luck then .

Edited April 18, 2006 by simcity

[LivinLOS]

I am looking to invest in gold right now and have closely monitored its rise in price. However, my wife assures me that it usually drops considerably in the weeks after Songkhran. I trust her opinion but the price continues to rise and I'm starting to think that maybe I should just strike now. Can anyone tell me, can I really expect a significant drop over the next few weeks?

There is often a summer slump from here for 8 - 10 weeks.. This year seems a little different though with gains being very strong and the shorts getting burnt.

I personally am waiting for a little pullback but already have major assets already in precious metals so its easy to sit back and relax.. I was making major buys in the market at 350 USD levels and silver last year at 6.80.. I fully expect silver to continue to outpace gold.

Last week had a annoyance where I tired to take 30,000 NXG with a limit order at 2.50.. Missed the limit order by a hair and its 3.50 now.. >33% in a few days on 75k would have been a nice ride but I want to buy on the dips not the peaks.

Silver

Palladium

Uranium

Gold

Energy

are my major movements and holdings right now..

[Jai Dee]

Gold prices likely to increase

President of the Gold Trading Association Chitti Tangsithipakdee (จิตติ ตั้งสิทธิ์ภักดี) has indicated that the prices of gold are likely to increase, while gold trading in the country is still sluggish.

He said that the gold prices have been fluctuating, and the market trend has shown signs of the increase in gold prices. Currently, one baht of gold ornament has soared to 11,250 baht, causing the gold trading in the country to be sluggish.

He said that the result of the increase came from the increase in gold prices in the global market. Besides, the nuclear crisis in Iran has also affected the global gold price situations.

Source: Thai National News Bureau Public Relations Department - 18 April 2006

[backflip]

"Lets hope Bunker and Hunt are still out of the silver scene. I nearly had my fingers burnt by them years ago."

Huh? One son was named Lamar Bunker Hunt.