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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (518995)	10/7/2009 10:28:03 PM
From: i-node	Read Replies (1) \| Respond to of 1578297

Investors cling to gold as prices surge By Javier Blas in London “We believe gold has a significant upside potential into 2010,” the bank said, adding current prices “were off the charts”. In spite of a 40 per cent rally in gold prices since Lehman Brothers collapsed a year ago, few traders appeared to be taking profits or betting on a price fall. “The selling is not materialising,” said James Steel, a precious metal analyst at HSBC in New York, echoing a view held by other analysts and traders. Jon Spall, gold specialist at Barclays Capital in London, added: “No one is saying ‘this is enough, let’s sell’.” The reluctance to sell is in spite of mounting worries about a sharp drop in jewellery demand in India – the world’s largest buyer of gold – Turkey, United Arab Emirates and Italy. Jim Rogers, the Singapore-based investor who has been one of the biggest bulls during this decade’s commodities rally, said that he would refrain from buying gold at a record high, but added that he was not betting against a drop in prices. He told Reuters: “I cannot say what will happen to gold tomorrow. But if you ask me whether gold will go up in the long term... would say yes.” In London, spot gold hit an intraday high of $1,048.20 per ounce on Wednesday, up 0.7 per cent from New York’s last quote on Tuesday, in spite of the US dollar strengthening against the euro and a basket of currencies. Gold prices rose sharply in euro and sterling terms, suggesting that investors were buying the metal as a hedge not only against the weakness of the US dollar, but also to guard against further financial stress. However, Ashraf Laidi, chief market strategist at CMC Markets, said that while gold has hit a fresh record in US dollar terms, it remains more than 30 per cent below its highs in Australian dollar terms, 15 per cent lower in yen terms and 6 per cent lower in sterling terms. Mr Steel said that gold buying was more widespread than in the past, with “institutional investors, such as pension funds and insurance companies, joining the traditional gold players such as macro hedge funds and bullion banks”.