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To: maceng2 who wrote (862)	11/18/2005 7:58:02 AM
From: maceng2	Read Replies (1) \| Respond to of 1417

Gold targets $500/oz as trade remains bullish news.ft.com By Maria Silander Published: November 18 2005 12:18 \| Last updated: November 18 2005 12:18 The metals markets were bullish on Friday as both gold and copper gained on speculative buying and broke their earlier long-term highs reached on Thursday. Gold rose to the highest level in almost 18 years on aggressive buying by investment funds and was targeting the next big psychological number of $500 an ounce, dealers said. The precious metal touched $488.20 a troy ounce, the highest level since mid-January 1988. It even managed to set highs in euro and sterling terms. Market confidence has been strong on gold despite the strong dollar and lower inflationary expectations. The World Gold Council showed on Thursday that global gold demand rose 7 per cent in the third quarter, compared with the same period last year, despite high prices and subdued physical demand. According to the report, investment demand for the metal jumped between July and September. Analysts expect gold to hit $500 a troy ounce level in the next few months as long as speculative money stays with the metal. Silver reached $8.15 a troy ounce, a fresh 11-month peak supported by gold’s price rally. Platinum consolidated under Thursday’s near 26-year high point, at $978 an ounce, as bullish sentiment prevailed throughout precious metals. Copper hit $4,220 a tonne, its highest price ever, as investors gambled China cannot get enough metal to cover a trading position that might expose it to huge losses. It was up $75 from its late quote on Thursday. China’s State Reserve Bureau, a government body which manages China’s strategic commodity reserves, might have to buy large quantities of the metal following a series of controversial trades by a Chinese trader. Three-month copper contracts have risen now by 33 per cent since the end of last year and nearly tripled from the end of year 2001. Extreme volatility was expected to continue. Oil held near a four-month low on Friday as investors grew confident that hefty fuel stockpiles would see the world’s consumers through cold winter weather. Brent crude for January delivery was up 19 cents at $55.06 a barrel while West Texas Intermediate for December delivery was down 9 cents at $56.25 a barrel.