Gold prices pick up from ten-week low
Thursday, 9 April 2009
LONDON, Apr 8 (AFP): The price of gold advanced yesterday, one day after hitting a ten-week low point as the market was rattled by the prospect of the IMF selling some reserves.
On the London Bullion Market, gold prices rose to 881 dollars an ounce, from 870.25 dollars an ounce late Monday.
The precious metal had tumbled in intra-day trade on Monday to 865 dollars per ounce-a level last seen on January 23.
Gold fell under 900 dollars last Thursday after G20 world leaders agreed at a key London summit to sell International Monetary Fund (IMF) gold reserves to provide financing for the world's poorest countries.
"Although the selling of gold by the IMF would put downward pressure on gold prices, we expect that any sale under the current proposals would likely have a limited impact," cautioned Goldman Sachs analyst David Greely.
"The actual price impact would likely be much less as gold buying remains well-above last year's pace and US real interest rates remain low, providing longer-term support to gold prices.
"Further, increased buying by central banks could offset some of the impact of an IMF sale."
On the London Bullion Market, gold prices rose to 881 dollars an ounce, from 870.25 dollars an ounce late Monday.
The precious metal had tumbled in intra-day trade on Monday to 865 dollars per ounce-a level last seen on January 23.
Gold fell under 900 dollars last Thursday after G20 world leaders agreed at a key London summit to sell International Monetary Fund (IMF) gold reserves to provide financing for the world's poorest countries.
"Although the selling of gold by the IMF would put downward pressure on gold prices, we expect that any sale under the current proposals would likely have a limited impact," cautioned Goldman Sachs analyst David Greely.
"The actual price impact would likely be much less as gold buying remains well-above last year's pace and US real interest rates remain low, providing longer-term support to gold prices.
"Further, increased buying by central banks could offset some of the impact of an IMF sale."