本文发表在 rolia.net 枫下论坛Gold Rises to Record on Credit-Market Losses, Dollar's Decline
By Pham-Duy Nguyen
March 17 (Bloomberg) -- Gold surged to a record $1,033.90 an ounce in New York as credit-market losses and a weak dollar drove investors into the safety of the precious metal.
The Federal Reserve cut the interest rate on direct loans to banks in an emergency meeting and stocks plunged worldwide after Bear Stearns Cos. accepted a buyout from JPMorgan Chase & Co. to avoid collapse. The dollar fell to $1.5903 against the euro, the lowest ever. Gold has jumped 21 percent this year as the Standard & Poor's 500 Index has fallen 13 percent.
``This is a new low for Wall Street,'' said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois, who has been trading gold since 1973. ``This is a panic situation. People buying gold are thinking, `There's nowhere else to go. I want to buy something safe.'''
Gold futures for April delivery rose $11.90, or 1.3 percent, to $1,011.40 an ounce at 10:58 a.m. on the Comex division of the New York Mercantile Exchange. The price reached the highest ever for a most-active contract in overnight trading. This is the third straight session gold has climbed to a record and traded above $1,000.
Silver futures for May delivery fell 4.5 cents, or 0.2 percent, to $20.61 an ounce on the Comex. Before today, the price gained 38 percent this year.
The Fed first reduced the so-called discount rate seven months ago from 6.25 percent as losses in the credit market mounted. After today's cut, the rate stands at 3.25 percent.
Rates May Fall
Policy makers also have reduced the federal-funds rate five times since Sept. 18 from 5.25 percent to 3 percent. Interest- rate futures show an 86 percent chance the Fed will reduce the benchmark overnight lending rate to 2 percent tomorrow, compared with a 14 percent chance a week ago. The dollar has fallen 11 percent against the euro since mid-September while gold has rallied 40 percent.
Banks have posted more than $181 billion in writedowns and losses related to the subprime-mortgage crisis.
``The year's top in gold will come when the last institution on the block writes off the final dollar,'' said Jon Nadler, a senior analyst at Kitco Minerals & Metals Inc. in Montreal. ``Gold is a refuge for now. Some funds are treating it as a sector rotation while investors may be raising their allocation.''
Investment in the StreetTracks Gold Trust, the biggest exchange-traded fund backed by bullion, was at 653 metric tons as of March 14. It reached a record 655 metric tons on March 10.
Commodity Decline
Gold's gains were limited as some investors sold the metal to cover losses in other markets.
``People are selling everything to go into cash and gold is vulnerable,'' said Ron Goodis, a futures trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``People are running scared. They seem to want gold. That's the safest thing there is. Even if gold goes lower from today's highs, it is still outperforming everything else.''
Gold and hogs were the only gainers on the UBS Bloomberg Constant Maturity Commodity Index, which tracks 26 futures contracts. Crude oil fell as much as 4.6 percent after earlier reaching a record $111.80 a barrel in New York. Sugar, coffee, lead, cocoa and cotton were the biggest decliners更多精彩文章及讨论，请光临枫下论坛 rolia.net
By Pham-Duy Nguyen
March 17 (Bloomberg) -- Gold surged to a record $1,033.90 an ounce in New York as credit-market losses and a weak dollar drove investors into the safety of the precious metal.
The Federal Reserve cut the interest rate on direct loans to banks in an emergency meeting and stocks plunged worldwide after Bear Stearns Cos. accepted a buyout from JPMorgan Chase & Co. to avoid collapse. The dollar fell to $1.5903 against the euro, the lowest ever. Gold has jumped 21 percent this year as the Standard & Poor's 500 Index has fallen 13 percent.
``This is a new low for Wall Street,'' said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois, who has been trading gold since 1973. ``This is a panic situation. People buying gold are thinking, `There's nowhere else to go. I want to buy something safe.'''
Gold futures for April delivery rose $11.90, or 1.3 percent, to $1,011.40 an ounce at 10:58 a.m. on the Comex division of the New York Mercantile Exchange. The price reached the highest ever for a most-active contract in overnight trading. This is the third straight session gold has climbed to a record and traded above $1,000.
Silver futures for May delivery fell 4.5 cents, or 0.2 percent, to $20.61 an ounce on the Comex. Before today, the price gained 38 percent this year.
The Fed first reduced the so-called discount rate seven months ago from 6.25 percent as losses in the credit market mounted. After today's cut, the rate stands at 3.25 percent.
Rates May Fall
Policy makers also have reduced the federal-funds rate five times since Sept. 18 from 5.25 percent to 3 percent. Interest- rate futures show an 86 percent chance the Fed will reduce the benchmark overnight lending rate to 2 percent tomorrow, compared with a 14 percent chance a week ago. The dollar has fallen 11 percent against the euro since mid-September while gold has rallied 40 percent.
Banks have posted more than $181 billion in writedowns and losses related to the subprime-mortgage crisis.
``The year's top in gold will come when the last institution on the block writes off the final dollar,'' said Jon Nadler, a senior analyst at Kitco Minerals & Metals Inc. in Montreal. ``Gold is a refuge for now. Some funds are treating it as a sector rotation while investors may be raising their allocation.''
Investment in the StreetTracks Gold Trust, the biggest exchange-traded fund backed by bullion, was at 653 metric tons as of March 14. It reached a record 655 metric tons on March 10.
Commodity Decline
Gold's gains were limited as some investors sold the metal to cover losses in other markets.
``People are selling everything to go into cash and gold is vulnerable,'' said Ron Goodis, a futures trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``People are running scared. They seem to want gold. That's the safest thing there is. Even if gold goes lower from today's highs, it is still outperforming everything else.''
Gold and hogs were the only gainers on the UBS Bloomberg Constant Maturity Commodity Index, which tracks 26 futures contracts. Crude oil fell as much as 4.6 percent after earlier reaching a record $111.80 a barrel in New York. Sugar, coffee, lead, cocoa and cotton were the biggest decliners更多精彩文章及讨论，请光临枫下论坛 rolia.net