Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
China Considering Dropping U.S. Treasuries for Gold
01-31-2009, 11:05 AM,
China Considering Dropping U.S. Treasuries for Gold
China Considering Dropping U.S. Treasuries for Gold

Posted January 30th, 2009 by MississippiGRITS

LONDON, Jan 30 (Reuters) - Gold slipped from a three-month high on Friday after data showed the U.S. economy had contracted by less than expected in the fourth quarter, taking some of the heat out of safe-haven buying.

Spot gold climbed 2 percent to $926.90 an ounce, its highest since Oct 10. It was quoted at $918.90/920.90 an ounce at 1406 GMT, up from $906.75 in New York late on Thursday. In the immediate wake of the data it slipped to $916.60.
Gold priced in euros hit a record high of 720.53 euros.

"On first glance the (GDP) figures are generally good, so they should be negative for gold," Calyon analyst Robin Bhar said. "Growth is better than expected, but deflation is also stronger, so it is a bit of a double whammy for gold."

The U.S. Commerce Department said fourth-quarter gross domestic product fell at a 3.8 percent annual rate, the lowest pace since the first quarter of 1982. [ID:nN29308953]

Analysts had forecast GDP contracting 5.4 percent in the fourth quarter.
Gold is still being supported, however, by interest in the precious metal as a haven from risk.

U.S. gold futures for February delivery GCG9 on the COMEX division of the New York Mercantile Exchange were up $15.80 at $920.80 an ounce.
Market talk of China taking an interest in gold as an alternative to U.S. Treasuries, and of a European fund buying bullion, also helped support prices.

Possibly Related Threads...
Thread Author Replies Views Last Post
  Putin calls, China picks up, all ready for World War III Frank2 3 2,018 09-12-2013, 01:13 AM
Last Post: mexika
  Russia and China in the Balance of the Middle East: Syria and other countries Solve et Coagula 0 888 01-31-2012, 06:15 PM
Last Post: Solve et Coagula
  Russia, China and Iran are considering a Joint Missile Shield directed against the US Solve et Coagula 0 883 11-30-2011, 01:41 PM
Last Post: Solve et Coagula
  China to support Palestinian statehood at the UN 100% Solve et Coagula 0 697 08-25-2011, 02:46 PM
Last Post: Solve et Coagula
  China tries to stop women marrying for money, rather than love Dunamis 1 1,106 08-22-2011, 09:09 PM
Last Post: Hans Olo
Information China and US to Upgrade Asia Pacific Economic Cooperation (APEC) to a Free Trade Deal FastTadpole 0 946 08-10-2011, 05:02 PM
Last Post: FastTadpole
  China Pledges Continued Support for European Debt Solve et Coagula 0 589 06-27-2011, 09:25 AM
Last Post: Solve et Coagula
Information Colombia & Peru & EU Sign Trade Agreement; Peru and China Sign Military Agreement FastTadpole 1 1,680 05-05-2011, 04:18 PM
Last Post: FastTadpole
  Prepping Minds for War Against China Solve et Coagula 1 761 01-24-2011, 10:12 AM
Last Post: Infinite
  China and Russia Sign 12 Documents in Trade and Economic Unification Deal FastTadpole 1 1,815 11-25-2010, 04:17 AM
Last Post: h3rm35

Forum Jump:

Users browsing this thread: 1 Guest(s)