In US dollar terms gold is trading at 7-month highs, today it has touched USD 975/oz level. If gold continues above USD 980-990/oz kind of levels then one could see USD 1,030/oz is in this week itself.
Lot of cues are coming in from currency markets because there are more problems, more woes happening there. Euro at this point of time is trading at two and a half month lows against the US dollar, we have seen that low of 1.2550 also happen in the earlier Asian markets. There are regional bank woes, which continue to put pressure on the currency. Some buying happened in Japanese Yen because of risk aversion but the Japanese Finance Minister’s resignation is what is capping too much of gains into that currency.
But most of Asian currencies have seen sharp declines constantly for a fourth day now. Taiwanese dollar is trading at five year lows. Korean is at two month lows and has declined 14% in 2009 and ditto is the case with Indonesian rupiah and ringgit those also have declined nearly 9% in 2009. Indian rupee also has seen a low of around 49.87 during the day-to-day.
There is a whole host of data also coming out in the evening from US and market will be taking reaction from that. But this decline in most of those currencies has led to gold making record highs in those currencies. In the Indian rupee gold has seen a record high of Rs 15,615 of a level into the markets today. In euro terms also gold is making record high at 762 euro, in pound sterling at 675 sterling. So, gold has been on an advantage in case of all these currencies.
In the international market in US dollar terms gold is trading at 7-month highs, we have seen USD 975/oz of a level in the day today, so USD 100 of a gain is seen in 2009 that is nearly 10% of a gain. In Indian rupees the return has been at 12%.
Silver also has been an outperformer and has seen more gains than gold. It has gained 6% in this week alone and is up nearly 30% in 2009 from USD 11 of a level on January 1, 2009 to nearly USD 14.30/oz in the day today.
Lot of analyst feels that little correction might see at these levels and if gold continues above USD 980-990/oz kind of levels then one could see USD 1,030/oz is in this week itself.
