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Stocks, Commodities and Forex Trading News Stories

Gold Hits Another High On Currency Concerns

October 6, 2010 by Mikio Yamatachi

Tokyo — Concerns about aggressive monetary easing caused gold to hit another high Wednesday, October 6, 2010.

At 22:24 Pacific Standard Time, gold is traded at $1,354.6 an ounce on the electronic market, while the most actively traded gold contract for December delivery finished $7.40 higher at $1,347.70 an ounce on the Comex division of the New York Mercantile Exchange. Gold hit a high of $1,351 during the trading day.

"Speculative demand is ruling the day amidst fears that the monetary authorities are intent to weaken currency valuations relative to hard asset values," said Stephen Platt, an analyst with Archer Financial Services in Chicago. 

"We definitely see that the Bank of Japan's interest rates policy pushing up gold.  There is also the concern of the Fed's policies, creating more problems for the value of the dollar." says Andrew Peters, an analyst at Peters Financial.  "People see gold as a value holder.  We expect gold prices to continue to go up"

"Gold prices going to go up more", says Yamata Ichio, a trader in Tokyo. "We have see activities of buying activities from the Chinese government.  Maybe they think it is not wise to hold that much US treasure bills anymore."

Meanwhile, December silver rose to $23.30 an ounce, with a daily high of $23.420 and a daily low of $23.105

In other commodities, most grains traded lower on the Chicago Mercantile Exchange, except rough rice, which rose $0.205 to $12.705.  Wheat, corn, soybeans traded lower for the day but are up in the electronic market overnight.

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