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Gold steady near $930 ahead
of ECB, BoE interest rate decisions
Thomson
Financial
Thursday, April 10, 2008
Gold consolidated around the $930 mark as yesterday's rally ran
out of steam ahead of key central bank interest rate decisions
on Thursday.
Prices jumped by over $30 on Wednesday after oil prices rallied
to a new all-time record of $112.21 in New York, sparking inflation
concerns which encouraged investors to buy gold as a safe store
of wealth.
Ongoing weakness in the dollar, which has slipped to around $1.58
against the euro, has also spurred gold higher as investors look
for alternatives to the battered U.S. currency.
But with the European Central Bank and the Bank of England due
to announce interest rate decisions later today, traders are holding
fire as they wait to see the impact on currency markets.
(Article continues below)
Analysts at Dresdner Kleinwort said that movements in foreign
exchange rates could be positive for gold. The ECB is expected
to keep rates on hold while the BoE is widely seen as implementing
a small 25 basis point cut. With expectations for further large
rate cuts in the United States, the dollar could remain on the
back foot.
At 10.32 a.m., spot gold was trading at $934.20 an ounce against
$933.40 in late New York trades on Wednesday.
Stark warnings about the prospects for global growth from the
International Monetary Fund have also supported safe haven flows
into gold. The IMF downgraded its forecast for U.S. growth by
1 percent to just 0.5 percent yesterday, whilst also cutting its
growth outlook for the euro zone and Japan due to the ongoing
economic turmoil.
Full
article here.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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