Gold takes a shot in the dark
Article Abstract:
Gold prices have risen in Jan and early Feb 1996 after a long period of stable prices when gold was seen as a commodity. It is unclear whether this development will continue. The main reason for the price rise has been large scale purchasing of gold options and futures by hedge funds. A shortage of gold in Dec 1995 provided the initial trigger. Some mining concerns plan to cut back on future selling. Central banks have large gold reserves and so can influence supply. The price rise could then be short-lived.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Gold: join the club
Article Abstract:
Gold prices have risen in 1996, and this has puzzled many analysts. Gold prices were stable during 1995 and the rise in 1996 is not seen as likely to last long, unless a speculative effect snowballs. A rise in gold prices is likely to stimulate the sale of more gold. US hedge funds may have caused the rise in 1996 due to their moving into gold. Real interest rates are low and this tends to be linked to a higher price for gold. Investor demand will have to increase if the price rise is to be sustained.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Gold: flash in the pan?
Article Abstract:
Gold prices rose in early 1996, and this rise could have ended, but 1996 could still be a year in which bullion prices perform well. US speculative funds are seen as the trigger for gold price rises at the start of 1996. The central bank of Belgium sold gold amounting to 203 tonnes, which depressed the market though this was bought by a central bank rather than entering the market. This was a reminder of the power that central banks have to influence gold prices through their reserves.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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