September 22, 2005
Gold Prices Ease
Gold prices eased from a near-18-year peak on Sept. 22 on profit taking, but concerns about U.S. economic growth and inflation fears due to high oil prices could spark more fund buying, according to Reuters.
Spot gold fell to $468.50/469.20 a troy ounce by midday in London, compared with the New York close on Wednesday at $469.90/470.60. It was 1.4% off the Asian peak of $475, which was the highest level since Jan. 25, 1988.
"I think some correction was due from $474-$475 level we saw this morning," said a gold trader.
"People are very focused on inflation at the moment and gold is a traditional hedge against inflation. My view is that people are not going to sell aggressively until the beginning of the next week," said David Holmes, vice president of commodities at RBC Capital Markets.
Some traders said gold could trade in a range of $480-$485 an ounce in the next week as concerns regarding U.S. refinery production were mounting. In the longer period, the metal may touch the $500 mark, they said.
U.S. crude oil futures rose more than 1.0% Sept. 22 to $67.96 a
barrel on concern about the impact of Hurricane Rita on oil producing plants in the U.S.
Silver was quoted at $7.34/7.35 an ounce, compared with $7.35/7.38 last quoted in New York. It hit its highest level in more than three months at
$7.45 in Asia.
Platinum rose to a 17-month peak at $933 in Asia before falling to $927/931 an ounce in Europe.
Palladium stood at $198/202 an ounce from $195/198.