“Gold could go a lot higher as more safe-haven asset buying comes into the market,'' Charles Dowsett, head of structuring and trading of precious metals at ABN Amro Holding NV, said today by phone from Sydney.
Gold for immediate delivery rallied to $925.10 an ounce yesterday, the highest since July 31, and traded at $902.50 an ounce at 10:57 a.m. in Singapore. December-delivery gold advanced 1.4 percent to $906.70 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange. Silver for immediate delivery was little changed at $13.11 an ounce.
Newcrest Mining Ltd., Australia's largest gold mining company, rose as much as 5.7 percent to A$29.64 in Sydney trading.
The dollar fell for a third day against the yen, dropping to 103.77 yen as of 8:29 a.m. in Tokyo from 104.18 late yesterday in New York.
The dollar climbed for the second day against the euro to $1.4349 at 10:58 a.m. in Singapore after Belgium, the Netherlands and Luxembourg gave an 11.2 billion euro ($16.1 billion) lifeline yesterday to Fortis Bank, the largest Belgian financial-services company.
“We could have seen a much more explosive move in gold, had the U.S. dollar weakened combined with the sell-off in the equities market,'' Toby Hassall, analyst at Commodity Warrants Australia, said by phone from Sydney.
Gains in gold may be limited in the near term because “there maybe a bit of profit-taking and liquidation of long positions just to cover the cash costs'' at the end of the quarter, said Dowsett. “But overall we expect gold to test $950 an ounce.''
Gold for August delivery jumped 1 percent to 3,006 yen a gram ($898) an ounce on the Tokyo Commodity Exchange at the 11 a.m. local time break.
Author: Jo Amey
