NewsMine — economy — united-states — 2003 — 2003-sept-oct — Viewing Item

Gold hits 7 year high { September 25 2003 } Original Source Link: (May no longer be active)    http://reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=3508183 http://reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=3508183 Gold Hits 7-Year High, Looks to $400 Thu September 25, 2003 11:42 AM ET By Veronica Brown LONDON (Reuters) - Gold rose to its highest level in more than seven years on Thursday as fund buyers piled into the metal, inspired by a surprise decision from OPEC on Wednesday to cut oil output and a weaker dollar, which raised bullion's safe-haven appeal. "The bulls have got the bit between their teeth and any news is good news -- it doesn't matter what it might be, it's good news," Societe Generale economist Stephen Briggs told Reuters. By 1515GMT, spot gold XAU= closed at $390.40/391.10 per troy ounce after spiking to a high of $393.30 -- not seen since mid May 1996. That compared with $387.00/387.80 at the New York close on Wednesday. Analysts signaled even more gains, after a period of consolidation, with prices over the psychologically significant $400 barrier looking increasingly likely. "The technical chart looks very strong still -- so from that point of view we could see further speculative buying into gold. The next target is $401.00," said Ingrid Sternby of Barclays Capital. Share prices dropped on concerns that higher oil prices could jeopardize an economic rebound in the United States, leading to a wave of gold short covering in Asian and European trading. Further fuel was added to gold with the release of disappointing U.S. economic data. A surprise 0.9 percent drop in U.S. durable goods orders in August pressured industrial metal prices, traders said. Wall Street had expected orders to rise 0.6 percent. MAGIC $400? In other precious metals, silver was again fired up by gold, with the spot reference price fixed at a fresh 3-1/2 year peak at 531.75 cents an ounce. The spot price was last quoted at $5.22/5.24, after touching a high of $5.35 earlier and compared with $5.26/5.28 late in New York on Wednesday. Platinum moved up to $711.00/716.00 from $705.25/709.75, while palladium edged up to $216.00/220.00 from $215.00/220.00 previously. Bullion has risen some 14 percent since July as the dollar has weakened making gold more affordable for buyers using other currencies, while doubts over a recovery in the U.S. economy has lit up the precious metal on the radar screens of less traditional investors. Traders said the oil supply news was supportive for gold in its use as a hedge against inflation. Rising oil prices are generally seen as an early indicator of the inflation scourge, which lessens the value of traditional assets such a stocks and bonds. The Organization of Petroleum Exporting Countries (OPEC) decided on Wednesday to remove 900,000 barrels a day from supply limits from November. Briggs said however that the oil news was just an excuse for the market to go higher in its current bullish mode, with fundamental issues like weak physical and fabrication demand remaining in the background. "How long this run will last, nobody can say. We're going to see a dramatic slide in physical demand for gold but in the short term it simply doesn't matter," he said. Thursday, 25 September 2003 14:38:00 RTRS nN25341164 {C} ENDS (additional reporting by Clare Black in London)

2 years in a row more in poverty Asian debt withdrawal threat to us deficit { September 7 2003 } Asian unpegging crucify us { October 3 2003 } Bush bid weaken dollar against asia { September 24 2003 } Bush cuts schools highways { September 10 2003 } Bush priorities under scrutiny Bush takes credit economic upturn { September 1 2003 } China brings us export resictions into trade debate Deficit not manageable { September 18 2003 } Deflation still worries federal reserve { September 17 2003 } Deflation will continue for years { September 10 2003 } Disappointed earnings bonds rally Dollar gains on euro { September 2 2003 } Dollar over valued { September 18 2003 } Dollar plunges 3 year low Dollar tumbles low against euro { October 8 2003 } Economy expands fastest since 1984 no jobs { October 31 2003 } Fed holds rates warns on deflation Firms dont buy rebound Firms still slashing jobs Foreign investors fear weak dollar { September 22 2003 } Gold hits 7 year high { September 25 2003 } Gold records as tumbling dollar { September 10 2003 } Government claims unemployment stabilizing { October 3 2003 } Grocery workers 3rd day strike san diego { October 14 2003 } Job loss like great depression Jobless claims lowest eight months { October 9 2003 } La transit strike may strand 500 thousand { October 14 2003 } Mass august layoffs { September 26 2003 } Monthly costs iraq approach vietnam Poor gained 1 3m in 2002 { September 3 2003 } States risk big losses bond funding pensions { October 12 2003 } Stocks at 14 month high { September 2 2003 } Stocks fall economy worries { September 30 2003 } Stocks lower after production data Stocks rebound hopes intact { October 1 2003 } Stocks rise on upbeat analyst reports { September 8 2003 } Stocks slip bonds rise Trade gap bring down dollar warns imf { September 19 2003 } Trade gap could bring down dollar { September 19 2003 } Uninsured increases 2 4 million last year { September 30 2003 } Us bonds face gloomier future as selling continues { September 7 2003 } Us closes last levis manufacturer { September 26 2003 } Us losing millions manufacturing jobs { September 4 2003 } Weak dollar raises stocks Files Listed: 45

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