Gold hits $932 again as dollar falls
Thursday, 21 May 2009
The gold price rose 0.5 per cent early Wednesday in London, nearing last Friday's seven-week highs as world stock markets trod water despite a flood of record-bad economic data, says BullionVault.com.
Touching $932 an ounce for the third time in four sessions, the Gold Price failed to hold £600 or €680 for UK and Euro investors, however, as the US Dollar fell hard on the currency markets.
Analysis from BullionVault shows that gold's correlation with the US stock market has been zero on average across the last 38 years. It turned sharply negative - meaning gold rose as stocks fell, and vice versa - throughout 2008.
March's collapse in the S&P to 12-year lows came as world Gold Investment demand surged to new record levels, according to the latest analysis from industry-marketing group the World Gold Council.
Based on data from the GFMS consultancy, today's Gold Demand Trends shows total world gold demand - including industrial and jewelry buying, as well as investment - jumping 38 per cent in tonnage terms between Jan. and April, compared with the first quarter of 2008.
Indian gold jewelry demand fell 52 per cent, however, and only two non-Western markets grew their Gold Investment demand compared with the start of 2008 - China and Hong Kong.
Chinese jewelry demand also rose, up 3 per cent by Dollar-value.
In Germany, where demand for Gold Coins and bars rose five times over, "it also appears to be motivated by inflation," she believes.
New data released today however showed Germany factory-gate prices dropping 1.4 per cent in April from March.
World trade volumes fell at the fastest pace on record during the first quarter of '09, said the Netherlands Bureau for Economic Policy Analysis, shrinking a further 11 per cent from the 6 per cent contraction seen at the end of 2008.
Global sales of mobile cell phones fell 9.4 per cent, according to research firm Gartner, while Deere & Co. - the world's No.1 maker of tractors and agricultural machinery - saw its first-quarter earnings fall by 38 per cent.
Touching $932 an ounce for the third time in four sessions, the Gold Price failed to hold £600 or €680 for UK and Euro investors, however, as the US Dollar fell hard on the currency markets.
Analysis from BullionVault shows that gold's correlation with the US stock market has been zero on average across the last 38 years. It turned sharply negative - meaning gold rose as stocks fell, and vice versa - throughout 2008.
March's collapse in the S&P to 12-year lows came as world Gold Investment demand surged to new record levels, according to the latest analysis from industry-marketing group the World Gold Council.
Based on data from the GFMS consultancy, today's Gold Demand Trends shows total world gold demand - including industrial and jewelry buying, as well as investment - jumping 38 per cent in tonnage terms between Jan. and April, compared with the first quarter of 2008.
Indian gold jewelry demand fell 52 per cent, however, and only two non-Western markets grew their Gold Investment demand compared with the start of 2008 - China and Hong Kong.
Chinese jewelry demand also rose, up 3 per cent by Dollar-value.
In Germany, where demand for Gold Coins and bars rose five times over, "it also appears to be motivated by inflation," she believes.
New data released today however showed Germany factory-gate prices dropping 1.4 per cent in April from March.
World trade volumes fell at the fastest pace on record during the first quarter of '09, said the Netherlands Bureau for Economic Policy Analysis, shrinking a further 11 per cent from the 6 per cent contraction seen at the end of 2008.
Global sales of mobile cell phones fell 9.4 per cent, according to research firm Gartner, while Deere & Co. - the world's No.1 maker of tractors and agricultural machinery - saw its first-quarter earnings fall by 38 per cent.