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Thursday, June 11, 2009
Gas prices on the rise at the pump
gas prices, on the rise, Indiana, Autos, Business, Energy, News, Shopping & Commerce, consumer affairs, gas prices
Currency Outlook - Dollar's Reserve Status Under threat
Brazil Russia India and China trying to find alternatives to the dollar as a reserve currency , this is a real threat to the greenback ..Yen and Euro may benefit
Analysis and Discussion with Emma Lawson of Morgan Stanley (Bloomberg News)
Mortgage crisis explodes Foreclosures Exceed 300,000
Hyperinflation, THE WORST IN HOUSING YET TO COME? Are we on the brink of COLLAPSE?
What happens if interest rates go much higher BEFORE THE HOUSING MARKET BOTTOMS? Is money moving out of treasuries because the worst is over for the equity market OR BECAUSE THE WORST IS COMING FOR THE TREASURY BONDS???? THE FED SHOULD RAISE RATES NOW!!!!
Interview and discussion with Rick Sharga of the RealtyTrac. He talks about foreclosure data and the housing crisis. (Bloomberg News)
Crude Oil prices hit $78 a barrel !!!
Gold Will Top Currencies Charts
Get out of debt , Credit Card Clinic
Wednesday, June 10, 2009
is there a Rebound in Housing ?
can housing sector now lead us back to recovery ? Exclusive Interview with Radar Logic CEO Michael Feder (Bloomberg News)
Higher mortgage rates could give birth to a rebound in housing this year, where cheaper loans and lower prices have enticed buyers to cut into the inventories of unsold homes.
Loan refinancings also known as remortgage will take advantage of lower rates have also been key supports of the housing market in 2009, providing a rare bright spot for a market buffeted by rising defaults, foreclosures, and falling prices.some expert see a stabilization in the market others say that the worst is still to come
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Crude oil futures closed higher by nearly 3 percent, above $70 per barrel
Oil Tops $70 a Barrel
Crude oil futures closed higher by nearly 3 percent, above $70 per barrel for the first time in seven months Tuesday, hitting a new high for the year. The move higher was triggered by a falling dollar, and a report out of the Energy Information Administration forecasting higher crude prices.Natural Gas Gold Silver Platinum Palladium prices are all rising amongst fear of hyperinflation ...commodities also are rising fueled by massive purchasses from china which sees commodities as a safer to spend its massive amounts of accumulated US dollars thanks to its trade with America largely beneficiary to China
Cash for your gold jewelry
Rebound in Gold and Silver Prices
Tuesday, June 9, 2009
Gold Market Rally may be ending soon experts say
Free Credit Card Tracking tool By Credit Karma
The free service requires users to register and give personal information such as their Social Security number and date of birth. Users of the “Credit Report Card” will be able to see how their total debt, payment history and other factors may affect their scores.
“Ninety-five percent of consumers don’t know any of these relationships and how they work in regards to a credit report,” said Ken Lin, the chief executive officer and founder of San Francisco-based Credit Karma, in an interview. “If you’ve ever looked at a credit report you’ve got 8 to 12 pages of data that doesn’t correlate to a credit score.”
Gold and Silver trading june 08 2009 : Bob Chapman
Commodities market is about to explode Gold, Silver and Oil prices shoting to the roof
Crude Oil prices will Spike says Shell CEO
Student loans default are their highest rate in about a decade
Student Loans , College Grads Get 'D' for Debt
student loan debt and interest rates are a burden on student shoulders, how can you start your life with a 100K debt ! defaulting becomes the rule not the exception...diplomas do not come cheap , more and more students need a lending hand , banks , foreclosed home or repossessed car become the norm , loans investing intelligence are a complicated formula especially in a failing economy ,Graduates are leaving college with a mountain of debt, especially in these turbulent times , with no jobs perspectives and with an unemployment rate at about 8% according to official stats
Monday, June 8, 2009
Geographically Based E.T.F. ishares shares
Interview and discussion with Deborah Fuhr of Barclays ETF Research Head. Many people are moving toward seizing sector products, because the challenge in this environment is if you believe in the sector. (The Bloomberg Edge)
Sunday, June 7, 2009
Privacy Policy
Update April 2009 - Privacy Policy
This blog uses third-party advertising companies to serve ads when visiting this site. These third parties may collect and use information (but not your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, you can visit Google's Advertising and Privacy page.
If you wish to opt out of Advertising companies tracking and tailoring advertisements to your surfing patterns you may do so at Network Advertising Initiative.
Google uses the Doubleclick DART cookie to serve ads across it's Adsense network and you can get further information regarding the DART cookie at Doubleclick as well as opt out options at Google's Privacy Center
Privacy
I respect your privacy and I am committed to safeguarding your privacy while online at this site http://4oil.blogspot.com The following discloses how I gather and disseminate information for this Blog.
RSS Feeds and Email Updates
If a user wishes to subscribe to my RSS Feeds or Email Updates (powered by Feedburner), I ask for contact information such as name and email address. Users may opt-out of these communications at any time. Your personal information will never be sold or given to a third party. (You will never be spammed by me - ever)
Log Files and Stats
Like most blogging platforms I use log files, in this case Statcounter. This stores information such as internet protocol (IP) addresses, browser type, internet service provider (ISP), referring, exit and visited pages, platform used, date/time stamp, track user’s movement in the whole, and gather broad demographic information for aggregate use. IP addresses etc. are not linked to personally identifiable information.
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A cookie is a piece of data stored on the user’s computer tied to information about the user. This blog doesn't use cookies. However, some of my business partners use cookies on this site (for example - advertisers). I can't access or control these cookies once the advertisers have set them.
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This Blog contains links to other sites. Please be aware that I am not responsible for the privacy practices of these other sites. I suggest my users to be aware of this when they leave this blog and to read the privacy statements of each and every site that collects personally identifiable information. This privacy statement applies solely to information collected by this Blog.
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Crude Oil Prices hit a record high of 70 Dollars a Barrel
the Gold continues its rally amongst weaker dollar and exploding oil and commodities prices
US Stock markets soar this week despite the depression
the DOW Jones is up , NASDAQ is up cruse oil future jump to record high , the barrel of oil is about 70 dollars this morning , a report from Goldman Sachs says the oil prices could hit 85 dollars a barrel by the end of the year , the bullion market is stable today due to the rise of the dollar, gold prices are now around 960 dollars an ounce . US consuming spending fell in the US for the second consecutive month , the unemployment rate rose to more than 9 percent
The Stock Market for Beginners
How to pay your bills without killing your credit
Saturday, June 6, 2009
Investing In Gold a good opportunity now ?
at $950 is gold is still a good investment especially that some experts predict gold to reach $2000 even $5000 an ounce in the short term amongst the fear that all FIAT currencies may devaluate in a hyperinflation doomsday scenario , although that gold does not pay a devident it is unarguabley the best protection against the devaluation of the Dollar ...bottom line go get your Gold bullions it is still time
Friday, June 5, 2009
Gold Approaches the thousand dollars an ounce as the Dollar continues to fall
Gold surges to near record territory
The metal gains ground as the dollar slumps and investors bet inflation will rebound. Analysts see $1,000 an ounce on the horizon.
NEW YORK (CNNMoney.com) -- Gold prices charged higher Thursday, with another run at $1,000 an ounce looking increasingly likely, as the dollar remains weak and concerns about inflation boost demand for the metal.
Gold for August delivery rose $16.70 to settle at $982.30 an ounce after hitting an intra day high of $992.10 an ounce earlier this week.
The metal is up 11% from its mid April low of $869.50 an ounce as the U.S. dollar has tumbled against rival currencies. Gold and other commodities that are priced in dollars often gain ground when the greenback weakens.
The recent run up has raised bets that gold could top $1,000 an ounce for the third time ever. Gold rose to an all-time settlement high of $1,003.20 an ounce last year. It made another big push early this year, closing at $1001.80 an ounce Feb. 20.
In both cases, jittery investors flocked to the metal to preserve capital as the financial markets erupted in volatility.
Thursday, June 4, 2009
Gold Jumps Platinum Surges Silver flies Dollar slides Inflation to the roof
By Halia Pavliva
June 4 (Bloomberg) -- Gold prices rose on speculation that the slumping dollar will spur inflation, boosting the appeal of precious metals as a hedge. Platinum surged more than $55 an ounce to the highest since September.
In May, the dollar fell 6.4 percent against a basket of major currencies, the biggest drop in 24 years. The greenback resumed its decline today, sending commodities higher. The Reuters/Jefferies CRB Index of 19 raw materials rose as much as 2.1 percent.
“Gold is rising on demand for a safe harbor,” said Philip Gotthelf, the president of Equidex Brokerage Group in Closter, New Jersey. “We still have considerable uncertainty about the dollar.”
Gold futures for August delivery rose $16.70, or 1.7 percent, to $982.30 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, the price reached $992.10, the highest for a most-active contract since Feb. 24.
Platinum futures for July delivery jumped $48.80, or 3.9 percent, to $1,293.30 an ounce on the Nymex. Earlier, the price reached $1,301.90, the highest since Sept. 9.
Platinum climbed for the seventh straight session, the longest rally since January. Holdings in ETF Securities Ltd.’s exchange-traded fund backed by the metal have jumped 74 percent this year.
Silver futures for July delivery gained 58.5 cents, or 3.8 percent, to $15.895 an ounce on the Comex.
This year, silver has jumped 41 percent, platinum is up 37 percent and gold has gained 11 percent.
‘Fears of Inflation’
Gold and Silver prices skyrocket as Dollar Falls
By Jason Scott
June 4 (Bloomberg) -- Gold advanced, paring the biggest decline in almost two months yesterday, as a drop in the dollar increased demand for the metal as an alternative investment. Silver was little changed.
Bullion rose as much as 0.6 percent as a recovery in the currency stalled. The U.S. Dollar Index, a six-currency gauge of the greenback’s value, gained 1.4 percent yesterday, the biggest jump in more than four months. Gold typically moves in the opposite direction to the dollar.
“The U.S. dollar has just dropped a little bit today, but nothing too significant, and the Gold price has risen in reflection of that,” Jamie Spiteri, head dealer at Shaw Stockbroking Ltd. in Sydney, said by phone.
Gold for immediate delivery advanced 0.4 percent to $966.61 an ounce at 1:21 p.m. in Singapore, trading between $961.92 and $968.85. The metal declined 1.9 percent yesterday, the largest drop since April 6.
“I suspect that today it will hover at around that $965 level,” Spiteri said. “I can’t see it reaching $1,000 this week, but it’s not too far away,” he said.
Silver for immediate delivery was little changed at $15.3325 an ounce after tumbling 3.9 percent yesterday.
The U.S. Dollar Index fell as much as 0.3 percent to 79.288 today before trading at 79.534 by 1:01 p.m. in Singapore. The index gained 1.4 percent yesterday, the most since Jan. 20, after touching 78.334 on June 2, the lowest since Dec. 18.
Read entire article:
Gold and Silver Market Blog first post
Gold, Silver Climb as Dollar Falls
Gold, Silver Climb as Dollar Falls
The Wall Street Journal
June 2, 2009
Gold and silver futures bounced from overnight weakness Tuesday in response to a softer U.S. dollar, although the metals also ran into bouts of profit-taking.
August gold rose $4.40 to $984.40 an ounce on the Comex division of the New York Mercantile Exchange. July silver rose 22 cents to $15.955 and peaked at $16.02, its strongest level since August.
“Overnight, you had some profit-taking across the board in commodities,” said Bob Haberkorn, Lind-Waldock senior market strategist. “People were anticipating dollar strength on [Treasury Secretary Timothy] Geithner’s comments in China.
Wednesday, June 3, 2009
What is My Credit Score ?
This article is about questions like: the credit score and mortgage, credit score and loan, whats my credit score, how to check my credit score, etc.
In the U.S., every one has a social security number (SSN). This SSN will follow you for your entire life. If you screwed up something, it will be reported to the HOGAN system. This system is so powerful that all the info about a person's debt, credit card number, bank accounts, etc can be inquired from it once a SSN is entered. One thing I need to mention here is the credit card late payment issue. If you have only just one late payment (<90>90 days) made his credit score drop from 708 to 604 in a month. When he found this big mistake he made, he paid his credit card debt immediately. But it still takes a while for him to restore his credit score. Actually, the people paying all his credit card debts every month will not get the high credit score. You credit score will be better if you just pay the minimum payment every month. Because you will need to pay for the interests if you choose to pay the minimum payment of your credit card bills. This is the way the banks and credit card companies like most. It is like a debt which takes forever for the credit card holder. But lots of American people like to pay the credit card bills this way. :-)
About the credit check and credit inquiry: I don't recommend people to apply for too many credit cards in a short period of time. Because you will get a hard credit inquiry every time you apply for a new credit card. You credit score will be affected if you have too many credit inquiries. In the U.S., every one can get a free annual credit report (with no credit score in it) and the web site is: https://www.annualcreditreport.com/cra/index.jsp (The CreditReport.comAnnualCreditReport.com website is only accessible through ISPs (Internet Service Providers) located within the United States and its territories.) You can check this web site if you are interested. If you have the question like "whats my credit score?", you can use the free trial from CreditReport Dot COM or MyFICO Dot COM. From CreditReport Dot COM, you can get a 7 day free trail of 3 bureau credit monitoring and credit score tracking. For the MyFICO Dot COM, you can get your free FICO score and credit report, 2 free Equifax FICO scores and credit reports, 90% of the largest U.S. banks use FICO scores. (Score Watch 30-Day Free Trial)
Credit score and financial crisis: I think a very important reason of this financial crisis is the banks' not caring too much about the applicants' credit score. Because of this, the people with very low credit score can still get their housing loans. Even the people who has bankruptcy records in his/her credit report can still get his/her house mortgage. Sometimes they can get the 0% down payment too. This is too risky for the banks. When the housing price drops, these people will not be able to pay their housing loans and the banks will be affected too. Now the banks require the applicants to have a credit score of at least 700 when applying for the housing loans. They also prefer the applicants with a clear credit history. Although the housing price dropped and lots of people think this is a good time to buy houses, to get the house mortgage from the banks is another story now.
Credit score and microfinance: I once had a intern in Grameen Foundation and my work is about the loan applications from Get $50 Cash Back from Discover!the poor people. In the U.S., the poor people will not get a very good credit score. (or don't have any credit score) Because of this, the banks do not want to lend them money. All they can ask is the microfinance organizations. I saw lots poor people, they really need money from the banks. But they are not able to get loans from them because of their bad credit score and credit report. The good thing about this microfinance is that they will not consider things like credit score or credit report at all. It cares more about the applicants' personality. If the applicant is poor but he/she is honest and confident about his/her future, he/she can still get loans from these microfinance organizations. In my point of view, this is not just about money. This is about giving hopes and chances to the poor people. Although it is not smart to lend money to the poor people with band credit score in most American people's mind, the poor people still need a chance to pursuing better lives in the realistic capitalism system.
By Shane Lee. Date: 06/02/2009.
Source
Oil price rally comes to a halt
US light, sweet crude oil was down 86 cents at $67.69 a barrel, while Brent crude fell 61 cents to $67.56.
US President Barack Obama has begun a tour of the Middle East, where he will raise the issue of volatile oil prices with Saudi Arabia's King Abdullah.
He is also expected to reassure Saudi that demand for oil will not dry up. Earlier, oil prices had reached $68.64.
"The Saudis want to be assured that there will be a future for oil consumption. They want security of demand," said Simon Wardell, senior oil analyst at Global Insight.
"Obama for his part will be persuading them to continue investing in new production, which is not likely to have too much impact on spot prices in the near term, but will come five or 10 years down the road."
Read entire article :
Pre-Paid Credit Cards Popularity on the Rise
Home sales jump
Lack Of Direction Within The Money Markets
Gold Rally Reflects Weak US Dollar
Tuesday, June 2, 2009
Pending Home Sales Jump
Red Session For The Greenback Again
Oil Prices Rise Above $69
Weak dollar, China data boost oil prices
Oil prices pushed to new highs for the year yesterday on a weak dollar and new data suggesting manufacturing in China has strengthened. Both of those factors helped send energy prices to record highs last summer.
The national average gasoline price over the weekend rose above $2.50 a gallon for the first time since October.
Benchmark crude oil for July delivery rose $2.27 to settle at $68.58 a barrel on the New York Mercantile Exchange, the highest close since November. On the ICE Futures exchange in London, Brent crude rose $2.45 to settle at $67.97 a barrel.
Source :
Gold Bounces as Euro Hits 2009 High, But "No Strong Investment" Despite US Hyper-Inflation Fears
THE PRICE OF WHOLESALE GOLD bounced in London on Tuesday morning, reaching $983 an ounce for Dollar investors and recovering from near 5-week lows versus the British Pound.
The Gold Price in Euros held steady at €689 as the single currency also leapt, jumping to new 2009 highs against the Dollar above $1.4270.
"Upside for gold could be limited today," reckons Walter de Wet at Standard Bank in a note. "There were fairly large volumes of physical gold selling [on Monday] when the price moved above $980."
But with US Treasury bond prices down more than 5% for the year to date, and "while higher yields increase the cost of holding gold in the longer run," de Wet adds, "right now it signals reduced investment appetite for exposure to the US and a weaker Dollar."
"Don't be complacent and think there isn't any alternative for China to buy your bills and bonds," warned former central-bank advisor Yu Yongding - scheduled to meet US Treasury secretary Tim Geithner in Beijing today - in an interview on Monday.
"The Euro is an alternative. And there are lots of raw materials we can still buy."
According to data from Bloomberg , foreign investment in US Treasury debt rose nearly $69 billion in May, with strong foreign demand for last week's auction of $101bn in new bonds.
The Federal Reserve will continue its $300bn "quantitative easing" of longer-term interest rates by purchasing 10- and 2-year bonds in the open market tomorrow and Thursday.
"Most of the ongoing rally in the precious metal is more driven by a stark weakness in the US Dollar than the risk averse buying we saw last winter," agrees Andrey Kryuchenkov at VTB Capital in London, quoted by The Telegraph.
US Stocks Higher On Housing Data; Financials Stay Lower
Stocks built on Monday's rally in a broad push higher Tuesday as investors digested encouraging housing data, though a rising supply of shares in several Wall Street bellwethers damped financials.
Major indexes seesawed between gains and losses through the day, but major milestones for the year remained in sight. The Dow Jones Industrial Average was recently up 30 points, or 0.4%, to 8751. At its morning high, the blue-chip measure rose about 66 points, almost 11 points above its 2008 close of 8776.39.
Credit and Credibility , The Credit Crunch
Gold Rises in New York, London as Weaker Dollar Boosts Demand
By Nicholas Larkin
June 2 (Bloomberg) -- Gold rose in New York and London as a decline by the dollar increased the metal’s appeal as an alternative investment. Silver also advanced.
The U.S. Dollar Index, a gauge of the currency’s value versus six counterparts, fell as much as 0.8 percent to the lowest since Dec. 18. Gold, which typically gains when the dollar weakens, touched a 14-week peak before closing yesterday and silver reached its highest in almost 10 months.
Investors continue “to track moves in the dollar, the key factor driving gold,” Pradeep Unni, an analyst at Richcomm Global Services in Dubai, said in a note. “As optimism grows that the worst of the economic downturn is over,” the correlation between gold and the dollar has returned, he said.
Gold futures for August delivery rose $1.90, or 0.2 percent, to $981.90 an ounce on the New York Mercantile Exchange’s Comex division at 8:43 a.m. local time. The contract earlier fell as much as 1 percent. Bullion for immediate delivery in London gained $5.16, or 0.5 percent, to $980.43.
The metal slipped to $973.50 an ounce in the morning “fixing” in London, used by some mining companies to sell production, from $981.75 at yesterday’s afternoon fixing. Gold briefly traded above $1,000 in the U.K. capital on Feb. 20, the first time the metal had breached that price since March 2008, when it climbed to a record $1,032.70.
“The week is likely to be dominated by further developments on the currency market, with the rally possibly slowing down if the dollar holds above 79-78.5” as tracked by the index, Andrey Kryuchenkov, an analyst at VTB Capital in London, said in a note. The index fell as low as 78.524 today.
Gold Trust
Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, rose to a record 1,134.03 metric tons yesterday, the company’s Web site showed. That’s the first gain since May 22.
“One day of decent flows is not enough to change our minds on the near-term outlook for gold,” John Reade, UBS AG’s head metals strategist in London, said in a report. “We are seeing no strong physical gold investment, and we hold our one-month forecast for gold at $950 an ounce.”
Read entire article :
Monday, June 1, 2009
buy Gold stock up in food and ammunition what's coming smells rotten
"What we are about to tell you may be the most important information that we have imparted in almost 50 years. something very bad is looming – we don’t know the exact configuration yet, but we think the key is the collapse of the dollar, which will send gold and silver to considerably higher prices. These events could unfold over the next 2 to 4 months. There could be devaluation and default of the US dollar and American debt. You must have at least a 6-month supply of freeze dried and dehydrated foods, a water filer for brackish water, and assault weapons with plenty of ammo and clips. You should put as much of your wealth as you can in gold and silver coins and shares. You should not own any stocks in the stock market except gold and silver shares…"
Mr. Chapman has been warning of the coming collapse since as early as 2000, he always recommended buying precious metals as hedges against hyperinflation.he foresaw the Real Estate market collapse . He is now issuing dire warnings of an imminent collapse of the US Dollar, US Treasury bonds and global stock markets.
Read full article here…
Debt Negotiators May Give Little Relief to Consumers
May 29 (Bloomberg) -- Ulish Hopkins, a former bus- dispatcher from Chicago, turned to a debt-settlement company last year after piling up about $30,000 in credit-card bills. Seven months later, he owed close to $40,000.
Hopkins says the company told him it could reduce his bills by about 50 percent through negotiations with lenders. He was told to stop paying creditors and to put monthly payments in an escrow account, which the firm used to cover its fees. Instead of reducing his bills, interest and late fees raised his indebtedness and damaged his credit score.
“They never told me that the money I was paying wasn’t going to my debt, it was going to them,” said Hopkins, 59, who quit work in January 2008 after a brain tumor led to surgery. He now receives $1,539 a month in disability checks. “You are better on your own.”
Credit-card delinquencies are at record highs, according to Fitch Ratings, and the U.S. unemployment rate of 8.9 percent is the highest since 1983. As more consumers fall behind on bills, settlement companies often end up adding to the debt burden rather than offering a cost-saving solution, said Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling in Silver Spring, Maryland.
“There has been significant growth in the debt-settlement industry based on the economic decline,” Cunningham said. “People are financially distressed and when that happens, the unscrupulous among us seem to come out in droves.”
Sued for Fraud
Wesley Young, legislative director of the Association of Settlement Companies, a Madison, Wisconsin-based lobbying group, said there are probably more than 500,000 customers of as many as 1,000 debt-settlement companies. The association, which includes about 30 percent of the industry, requires members to disclose payment plans and credit-score risks upfront, he said.
New York Attorney General Andrew Cuomo has begun a national investigation of settlement companies, and has sued two for fraud and false advertising. Illinois Attorney General Lisa Madigan has also filed two lawsuits against debt-settlement companies, alleging they “engage in deceptive marketing practices” and “do little or nothing to improve consumers’ financial standings.” Texas Attorney General Greg Abbott sued a debt settlement company in March, saying it engaged in “deceptive and misleading acts,” according to court documents.
Read entire article:
Oil Falls From Seven-Month High on Signs OPEC Output Climbing
By Christian Schmollinger
June 2 (Bloomberg) -- Crude oil retreated from a seven- month high in New York on signs OPEC’s output is climbing and as traders who bet on rising prices sell futures to lock in gains.
Oil jumped as much as 3.6 percent yesterday, capping a 12 percent increase since May 21, after the U.S. and China reported increases in manufacturing activity. The Organization of Petroleum Exporting Countries raised their production by 1.5 percent in May, according to a Bloomberg News survey.
“OPEC countries are starting to see prices at $70 and then they start exerting less discipline on the quotas,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “The price ran pretty high overnight so we may be seeing some profit-taking as people still consider the fundamentals quite weak.”
Crude oil for July delivery fell as much as 78 cents, or 1.1 percent, to $67.80 a barrel on the New York Mercantile Exchange. It was at $68.42 a barrel at 12:07 p.m. Singapore time. Yesterday, oil closed at $68.58 a barrel, the highest settlement since Nov. 4. Prices are up 53 percent this year.
Futures climbed yesterday on expectation that fuel demand will increase as the economy improves later this year. The Institute for Supply Management’s U.S. factory index strengthened to 42.8 from 40.1 in April and China’s Purchasing Manager’s Index showed manufacturing in May gained for a third month.
Gold Gains to Three-Month High as Weaker Dollar Boosts Demand
By Jae Hur
June 1 (Bloomberg) -- Gold climbed to the highest in more than three months as a slumping dollar increased demand for the precious metal as a store of value. Silver gained to the highest since August.
Precious metals advanced as the dollar dropped to the lowest since Dec. 18 against a basket of six major currencies, after posting its biggest monthly loss this year in May. Silver rose 27 percent in May, the most since April 1987, and gold added 10 percent, the most since November.
“The dollar’s weakness continued to lend support to commodities, including precious metals and crude oil,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo.
Gold for immediate delivery added as much as 0.7 percent to $985.70 an ounce, the highest since Feb. 24, and was at $983.51 at 1:57 p.m. in Singapore. Silver for immediate delivery climbed as much as 1.3 percent to $15.95 an ounce, the highest since Aug. 8, before trading at $15.865.
Spot silver has jumped 39 percent this year, while gold has gained 12 percent. One ounce of gold now buys about 62.1 ounces of silver, the lowest this year, according to data compiled by Bloomberg. This is down from a high of 84.39 in October, which was the most since March 1995.
“Both precious metals appeared to have been overbought,” Kikukawa said. Silver’s 14-day relative strength index, a gauge of momentum, rose above 70 on May 28, a signal some investors use to indicate prices may be about to decline. The index for gold climbed above 70 on May 29.
Record High
“Given the re-emergence of the typical inverse relationship between the dollar and gold, the likelihood of further weakness in the dollar should drive gold to a test of its 2008 record highs,” said Toby Hassall, an analyst at Commodity Warrants Australia Pty in Sydney.
Spot gold reached a record $1,032.70 on March 17, 2008.
Dollar Weakens as Reports Spur Higher-Yielding Asset Demand
June 1 (Bloomberg) -- The dollar fell to an eight-month low versus the Australian currency and dropped against the Norwegian krone after reports in the U.S. and China showed global growth may be recovering, sparking demand for higher-yielding assets.
The Japanese yen weakened against all of the 16 most actively traded currencies, as a report showing manufacturing in China expanded for a third month encouraged Japanese investors to buy higher-yielding assets overseas. The dollar fell to the weakest level since October against the pound and the Canadian currency as stocks and commodities advanced after the U.S. manufacturing sector shrank at the slowest pace in eight months.
“This is part of the risk-appetite-recovery story,” said Jim McCormick, London-based global head of foreign exchange and local-markets strategy at Citigroup Inc., in an interview on Bloomberg Radio. “The market started to get concerned about the implications of the fiscal and monetary policies in the U.S.”
The greenback slid 1.5 percent to $1.6440 per pound at 3:30 p.m. in New York, after earlier breaching $1.64 for the first time since Oct. 31. The dollar traded at $1.4167 per euro, from $1.4158 on May 29. It touched $1.4246, the weakest level since Dec. 29.
The dollar’s decline versus the euro was capped at $1.4250, a 50 percent retracement of the drop from the record low of $1.6038 on July 15, to about $1.25 in March, according to Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey.
“The euro-dollar is in consolidation,” said Dolan. “People will continue to buy the euro on dips.”
Commodity Currencies
The Japanese yen touched 78.33 versus the Australian dollar and 63.02 against the New Zealand dollar, the lowest levels since October, as investors resumed carry trades, in which they buy higher-yielding assets with funds borrowed in low-interest- rate countries. The Standard & Poor’s 500 Index rose 2.6 percent.
Against the dollar, the yen declined 1.4 percent to 96.72, from 95.34 at the end of last week. The Japanese currency reached 137.24 per euro, the lowest since April 6.
The Japanese currency declined against 15 of the 16 most actively traded currencies in the past three months, losing at least 20 percent versus the Brazilian real, the Australian and New Zealand’s dollars, South African rand and the Korean won. Only the dollar did worse.
Currencies of commodity producers led the rally against the dollar today after crude oil advanced as much as 3 percent to $68.29 a barrel.
Norway’s krone appreciated 1.4 percent versus the dollar to 6.2 krone, and touched 6.17, the strongest level since Oct. 14. The Australian dollar reached 81.38 U.S. cents, the strongest since September, while the Canadian dollar reached an eight- month high of C$1.0785. Crude oil is the largest export in Norway. Raw materials account for more than half of exports in Australia and Canada.
Dollar Index
“Commodity currencies are the best place to be, given the signs of the global economic recovery,” said Samarjit Shankar, director of global strategy for the Global Markets group in Boston at Bank of New York Mellon Corp.
The Dollar Index declined to the lowest level this year as the U.S. government said it will own a majority of General Motors Corp. after the carmaker filed for bankruptcy, heightening concern about record debt sales to fund bailout packages and economic stimulus programs. The index, used by the ICE to track the greenback against the euro, yen, pound, Swiss franc, Canadian dollar and Swedish krona, fell as much as 1 percent to 78.59, the lowest since Dec. 18.