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

Gold records as tumbling dollar { September 10 2003 } Original Source Link: (May no longer be active)    http://www.busrep.co.za/index.php?fArticleId=224649 http://www.busrep.co.za/index.php?fArticleId=224649 Gold breaks through $380 September 10, 2003 By Sherilee Bridge Johannesburg - Gold burst through its $380 an ounce resistance level yesterday to flirt with levels not seen in seven years as fresh money poured back into commodities and investors fled the tumbling dollar. The metal added as much as $8 to top $383, its highest since 1996, before settling back at $381.95 at 6pm while the US currency sank to its worst levels in three weeks against the euro amid renewed concerns the widening US current and budget deficit would dent a recovery in the world's largest economy. The rand strengthened against both the dollar and the euro. The local unit broke below R7.50 a dollar shortly after the 5pm close on the JSE Securities Exchange to gain as much as 15c in after-hours trade against the dollar and 9c against the euro. Stocks on the JSE gained an overall 1 percent on a broad-based rally led by gold shares and other counters with offshore earnings. The nine-member FTSE/JSE Africa gold index yesterday also posted gains 4.30 percent higher across the board. The biggest mover was Durban Roodepoort Deep, which added more than 16 percent to close at R22.90. Gold Fields and Avgold followed with 5 percent moves. Gold Fields closed at R110.40 while Avgold closed at R10.50. The increase in the dollar/gold price is good news for local gold producers despite the still strengthening rand. In rand terms, gold is also enjoying new-found gains - it was trading around R91 500 a kilogramme yesterday. The World Gold Council, in its daily gold market commentary, said long speculative positions on the New York Commodities Exchange were being underpinned by resurgent investment demand. "While some commentators are warning the speculative activity is creating an overhang that potentially bodes ill for the market, others are suggesting there has been a sea change in attitudes and many of these holders are in the market for the long haul," the World Gold Council reported . UBS Warburg added in a report that the "all-time high in spec longs does not necessarily point to an immediate selloff in gold", which means the metal may be a hop, skip and a jump from pushing $400 an ounce. Gold pundits said a close above $380 an ounce would point to a quick move to $400 plus. Gold could consolidate before moving higher. Either way, broad consensus appears to be a move beyond recent trading highs. "We will probably see more support ahead of September 11 and a break of $379 [an ounce] will see gold heading towards $390 reasonably smartly," ABN Amro wrote in a note. Similarly, Standard Bank cited support levels of $375, $371 and $369, with key overhead resistance at $381. Not to be outshone by its poorer sibling, platinum stayed well above the $700 an ounce level on some fears of a supply deficit. The precious metal added $7 an ounce to trade at $716.6 an ounce just after the JSE closed. Palladium, too, continued to post good performances, with the metal adding $6 to trade around $232.5 yesterday evening on news that Russian suppliers would sell their production under contract.

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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