Monday, November 21, 2005


Speculators Behind Gold Rally: FT

The Financial Times looks at who is buying gold. "Strong speculative demand lifted gold to a new near-18 year peak in London on Monday. Gold rose to $489.75 a troy ounce, its highest price since December 1987 on speculation that some central banks may want to increase their reserves and after a report showed hedge funds increased their holdings in the metal."

"Investors also were being drawn to gold as a haven because of the threat to financial markets from avian flu in Asia, the war in Iraq and the riots in France’s suburbs, traders and analysts said. Analysts expect gold price to hit $500 within the next few months."

"Copper stayed near its Friday’s all-time high on the London Metal Exchange although a report said China’s State Reserves Bureau would export 30,000 tonnes of the red metal by month-end."

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