The story appears on

Page B2

November 26, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Energy

Gold prices hit historical high

GOLD prices hit a record high yesterday and analysts expect the increase to continue in the second half of 2010 after facing a stronger United States dollar early next year.

Gold hit a historical high of US$1,180.20 an ounce in London yesterday. It has surged 11 percent since India bought 200 tons of gold from the International Monetary Fund in November.

Gold is seen to trade at an average price of US$1,300 an ounce in the fourth quarter of 2010 on a weakening US dollar, Standard Chartered Bank said yesterday.

"Central banks are building up their gold stocks, and we anticipate further buying in 2010," said Dan Smith, a metals analyst at the bank.

The investment demand for gold has risen with buying by central banks globally and also due to strong retail interest. China's retail demand for gold rose to a record high in the third quarter, the World Gold Council said. Consumer demand for gold soared 10 percent from a year ago to 128.6 tons in the third quarter of this year in China, including the Chinese mainland, Hong Kong and Taiwan, the WGC said.

"Gold is well positioned, given its strong inverse relationship with the US dollar, central bank buying, and continued investment inflows," Smith said. "We continue to favor the upside for gold. Global liquidity remains ample, helping to boost the whole commodities complex and keeping the US dollar under downward pressure."

Gold prices will consolidate in the first half of 2010 as the US dollar strengthens, but Standard Chartered expects prices to increase in the second half as the American currency weakens again.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend