Gold Sets Record as Dollar Drops, IMF May Sell More to India By Nicholas Larkin and Halia Pavliva
(Bloomberg) -- Gold climbed to the highest price ever, capping the longest rally in 27 years, as the dollar’s slump deepened and on a report that India’s central bank may add to last month’s 200 metric-ton purchase.
Gold, Climbing ‘Like No Tomorrow,’ Sets
Record on Hedge Demand
By Pham-Duy Nguyen and Nicholas Larkin
Dec. 2 (Bloomberg) -- Gold surged to a record for a second straight
day as investors stepped up purchases to protect their wealth against
currency depreciation. Silver also gained.
Gold futures touched an all-time high of $1,218.40 an ounce in New
York and bullion priced in sterling, euros and Swiss francs also set
records. Central banks, pension funds and individuals have bought
gold as a hedge against potential currency debasement and inflation.
The precious metal is climbing “like there is no tomorrow,”
David Thurtell, an analyst at Citigroup Inc., said in a report.
Since the end of September, India, Mauritius and Sri Lanka bought
more than half of the 403.3 metric tons of gold that the
International Monetary Fund plans to sell to bolster its balance
sheet and boost lending to low-income nations. Some analysts have
speculated that China might buy part or all of the rest.
China should increase bullion reserves to 6,000 tons in the next three
to five years, the China Youth Daily said on Nov. 30. The report cited
Ji Xiaonan, the chairman of the supervisory committee at the
state-owned Assets Supervision and Administration Commission. China
has lifted its stockpile to 1,054 tons since 2003.
Investor Holdings Rise
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund
backed by bullion, increased by 0.61 ton to 1,130.6 tons as of
yesterday, according to the company’s Web site. The fund’s holdings
reached a record 1,134 tons on June 1.
Barrick closes hedge book early, stock soars
Tue Dec 1, 2009 3:45pm EST
* Says can now fully benefit from increases in gold price
* Shares rise 7.6 pct as gold touches new high (Adds details, CEO and analyst comments)
TORONTO, Dec 1 (Reuters) - Barrick Gold Corp (ABX.TO) said on Tuesday it had completely eliminated its fixed-price hedge book, allowing the company to take full advantage of rising gold prices and sparking a 7.6 percent rise in its shares.
Perhaps appropriately, the announcement came on a day the price of gold hit $1,200 for the first time, as the hedges -- which totaled 3 million ounces before Barrick began buying them back in September -- had become a symbol of the company's inability to benefit from a favorable gold environment.
"As of today, we are a fully unhedged gold producer," Barrick Chief Executive Aaron Regent said at an investment conference in New York…
Albino said the question now was how the gold
market would react, as Barrick will no longer be buying up ounces to fill the