Replies to post #429 on GOLD (Au) PRODUCERS (GOLD)

[mick]

it may stall some but not for long. congress just don't know how to run private stuff.

now talking to nationalize big il. are they kidding?????

wees be da laffer of opec ,,,iran, russia and china.

RE:
Gold will reach $1,200 and oil will top $175 - within 30 to 90 days --
Gold Falls From One-Week High as Dollar Rebounds, Oil Declines -

By Millie Munshi and Halia Pavliva

June 9 (Bloomberg) -- Gold fell from a one-week high as the dollar rebounded and energy costs dropped from a record, eroding demand for the metal as a hedge against inflation. Silver also declined.

The dollar rose against the euro for the first time in three sessions as U.S. policy makers indicated they are concerned about the currency's 7 percent drop this year. Crude oil fell more than $2 a barrel as Saudi Arabia called for a meeting of producing and consuming nations to discuss how to deal with soaring prices.

``The gold weakness is due to the stronger dollar and falling oil,' said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. `Gold's fortunes will be determined by the outlook for inflation this week.'

Gold futures for August delivery fell 90 cents, or 0.1 percent, to $898.10 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $912.50, the highest for a most-active contract since May 28. The metal has gained 38 percent in the past year, reaching a record $1,033.90 on March 17.

Silver futures for July delivery fell 22 cents, or 1.3 percent, to $17.21 an ounce. The metal has climbed 32 percent in the past 12 months.

The euro fell as much as 1 percent, and crude oil dropped as much as 2.5 percent after soaring to a record $139.12 a barrel on June 6.

Gold climbed earlier on concern tensions between Iran and Israel will escalate, enhancing the appeal of the metal as an investment haven.

Israel, Iran

Israel may attack Iran if the country doesn't abandon its nuclear-development program, Shaul Mofaz, Israel's transportation minister and a contender for the post of prime minister, told the Yediot Ahronot daily last week. Some investors buy gold during times of political unrest to hedge against turmoil in financial markets.

``With there being more talk of war between Israel and Iran, it increases the uncertainty in the geopolitical situation and adds to safe-haven buying in gold,' Zeman said.

The metal will rise as a ``barometer for geopolitical activity,' said Ralph Preston, an analyst at Heritage West Futures Inc. in San Diego. Gold will reach $1,200 and oil will top $175 ``within 30 to 90 days stemming from an international event, whether it would be a coup in Pakistan' or unrest in the Middle East, he said.

On June 6, gold jumped 2.7 percent, the most since late November, as oil soared more than $10 a barrel. The metal has more than tripled since the end of 2001, and oil has surged more than sixfold after the U.S. invaded Iraq and violence increased in the Middle East.

`Risk Premium'

``The mega bull trend in gold and oil that was kicked off in 2001 reflects the growing risk premium associated with an ever-changing world order dependent upon natural resources,' Preston said.

In the past two months, oil has jumped 21 percent, while gold declined 4.2 percent.

``When you see what's happening in oil, you know that gold is going to have to move higher,' said Ron Goodis, a futures- trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``Gold will add another $20 or $30 to the price very quickly because of where oil is.'

Gold's all-time inflation adjusted record is $2,284 on Jan. 21, 1980, according to a calculator on the Web site of the Federal Reserve Bank of Minneapolis. In 1980, when the U.S. inflation rate was running in the double digits and oil was climbing after a decade of Middle East instability, gold reached a peak of $873.

The price will average $935 an ounce this year, Standard Chartered analysts Helen Henton and Dan Smith said in a report last week. That compares with an average $701.68 an ounce last year.

Soaring oil prices are ``bringing inflation risks back into focus,' Standard Chartered said.

Gold has climbed 0.2 percent in the past five sessions.

To contact the reporters on this story: Millie Munshi in New York at [e-mail]; Halia Pavliva in New York at [e-mail].
Last Updated: June 9, 2008 15:08 EDT