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Oil Hit Record $147, Gold $969, Euro $1.59

Oil Hit Record $147, Gold $969, Euro $1.59
On Friday Oil hit record of $147.27, Gold $969, Euro $1.5972 against the greenback, Today July 14, 2008 11:31 AM EDT Crude price sinks to $145, Gold $969, Euro 1.5859.

AP
July 12, 2008

Gold prices rose Friday, making their largest advance since first hitting $1,000 earlier this year, after another record crude rally and a tumbling stock market led jittery investors to the safety of hard assets.

Other commodities traded mostly higher, with corn, soybeans, wheat and other agriculture futures rising.

Gold’s rally suggests investors are increasingly concerned about rising inflation as Americans struggle with $4 gasoline and the U.S. dollar continues to lose ground against its main rivals.

After a week of volatile trading in the commodities complex, a myriad of dour economic developments pushed gold prices skyward: Oil soared above $147 for the first time, stocks dove on concerns that mortgage companies Freddie Mac and Fannie Mae might collapse and the dollar tumbled further against the euro.

“All of these things are a pretty good recipe for safe-haven buying into bullion,” said James Steel, analyst with HSBC in New York. “You’re really spoiled for choice on a day like this.”

Gold for August delivery added $18.60 to settle at $960.60 an ounce on the New York Mercantile Exchange, after earlier rising as high as $969.10. That was gold’s highest trading level since first cracking the $1,000 threshold on March 13 after the collapse of Bear Stearns & Co.

Nervousness about the U.S. economy, record energy prices and the falling dollar have helped propel gold 34 percent higher in the past year, but it’s not clear if the current climate is gloomy enough to push gold back into record territory.

“The $1,000 mark accompanied a bank failure the last time so it’s questionable whether the situation now is as severe, but that doesn’t mean it won’t go back to that level,” Steel said.

Other precious metals also traded higher. September silver prices added 50 cents to settle at $18.82 an ounce on the Nymex, while September copper gained 2.15 cents to settle at $3.74 a pound.

Read Full Article Here

 

Euro falls one cent vs dollar from day’s highs

Reuters
July 14, 2008

The euro fell over one cent from the day’s highs against the dollar on Monday, after the U.S. Treasury and Federal Reserve launched emergency steps to restore investor confidence in U.S. mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac.

The euro fell to as low as $1.5866 on trading platform EBS, down from an intraday high of $1.5972.

 

Jim Rogers: Dollar Doomed, Fed Will Fail

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Oil Above $146 in London

Oil Above $146 in London

Fin Facts
July 4, 2008

In thin trading in New York Thursday, with markets closed early at 1:00 pm Eastern for today’s July 4th holiday weekend, the big focus was on the June employment report on a day when crude oil breached the $145 a barrel level in both New York and London.

US nonfarm payrolls fell for a sixth consecutive month, dropping by 62,000 jobs in June. The month’s unemployment rate held at 5.5%, after rising sharply in May. A service-sector report also supported the gloomy outlook.

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The Institute of Supply Management said its index of service sector activity fell to a reading of 48.2 in June, below analysts’ expectation for a reading of 51.0. Any reading below 50 indicates contraction.

The Dow Jones Industrial Average closed 73.03 points, or 0.7%, at 11288.54, down 14.9% in 2008. Component General Motors rose 1.4%.

GM fell to a 54-year low on Wednesday and the stock closed Thursday at $10.17, down from $18 just a month ago.

Crude oil rose to a record on concern conflict with Iran over its nuclear program would cut Persian Gulf supplies.

Brent North Sea oil for August delivery surged to a life-time peak of $146.34 per barrel in morning trade. In New York, oil touched a new record of $145.85. On the New York Mercantile Exchange, oil closed at $145.29. Brent closed at $146.08.

Alexei Miller, chief executive of Russia’s gas giant OAO Gazprom, added fuel to the fire by saying that Europeans would soon have to pay much more for imports of natural gas. Miller, who last month forecast that oil would rise to $250 a barrel in the near future, said Russian gas would be sold in Europe for $500 per thousand cubic meters by the end of the year – about a fifth more than the current price.

Read Full Article Here

 

World Must Brace For $150 Oil

AP
July 4, 2008

Oil’s meteoric rise since the start of the year to nearly $150 has distressed consumers and policy makers the world over, but the stark reality is prices are likely to rise higher still.

For two decades, prices were relatively stable, but then they rose seven-fold from a trough below $20 in 2001. Since breaching the $100 mark on the first trading day of this year they have risen around 45 percent.

Given such momentum, politicians’ efforts to bring the price down could well be a waste of energy.

Read Full Article Here

 



Gold Regains $954, Oil $108, Euro $1.58

Update: Gold Regains $954, Oil $108, Euro $1.58

AP
March 27, 2008

Gold prices edged slightly lower Thursday after the dollar gained against the euro, leading investors to sell the precious metal traditionally viewed as a haven against inflation.Other commodities traded mixed, with crude oil briefly rising above $108 a barrel and wheat and soybean futures retreating.

The dollar strengthened against the euro after the U.S. Commerce Department reported that the economy grew slightly in the fourth quarter. The euro bought $1.5766 in Thursday trading, down from $1.5815 in New York late Wednesday.

A stronger greenback often encourages investors to sell hard assets like gold and silver, which are seen as hedge investments during times of economic uncertainty and rising inflation. A stronger dollar also makes dollar-denominated commodities seem more expensive to overseas buyers.

Gold for April delivery inched 40 cents lower to settle $944.20 an ounce on the New York Mercantile Exchange, after earlier trading as low as $940.

“Gold seems to be following the euro,” said Scott Meyers, analyst with Pioneer Futures in New York. “I think it’s a brief pause in the upward trend but we have to keep an eye on the dollar.”

Other precious metals traded higher. Silver for May delivery rose 16.7 cents to settle at $18.55 an ounce on the Nymex, while May copper added 14.80 cents to settle at $3.873 a pound.

Gold had moved higher in the previous two sessions, breaking out of last week’s commodities slump that saw big drops in everything from corn to copper. Gold has gained 12 percent this year, driven up by U.S. interest rate cuts, record-high crude prices and nervousness about the economy. The metal reached a record 1,033.90 this month, and analysts say it could go even higher.

“We’re going to see sustained acceleration in the (gold) market,” Meyers said. “There’s enough nervousness about the dollar and I don’t know if there’s enough bullets in (Federal Reserve Chairman Ben) Bernanke’s gun to keep lowering rates.”

In energy markets, oil futures briefly rose above $108 a barrel after the bombing of a major oil pipeline in Iraq. Dow Jones Newswires reported that the attack cut off exports from the southern city of Basra, although oil officials said exports weren’t affected.

Light, sweet crude for May delivery added $1.68 to settle at $107.58 a barrel on the Nymex after earlier rising as high as $108.22.

Other energy futures traded mixed. April gasoline futures fell 2.66 cents to settle at $2.7163 a gallon, while April heating oil futures rose by 10.45 cents to settle at $3.1483 a gallon.

In agriculture markets, wheat prices fell after the dollar rebounded.

Wheat for May delivery dropped 19 cents to settle at $10.14 a bushel on the Chicago Board of Trade, after earlier falling as low as $10 a bushel.

Other agriculture futures traded mixed. Corn for May delivery added 3.25 cents to settle at $5.55 a bushel on the CBOT, while May soybean futures declined 24.75 cents to settle at $13.2725.

 

BlackRock says gold record high may be challenged

Reuters
March 26, 2008

http://youtube.com/watch?v=OvCVEsahhZo

Investment manager BlackRock expects tight gold supply and a gradual rising trend in the price which could lift the metal to new highs above the record $1,030 per ounce hit last week.

“We expect a gradually rising trend in the gold price and if that happens we will get to a new high. We are expecting that positive trend to continue, with volatility over the short term,” said fund manager Evy Hambro, who runs BlackRock’s $17 billion (8.5 billion pound) World Mining Fund and co-manages the $8.9-billion World Gold Fund.

Gold traded at $931.60 an ounce on Tuesday, well off a high of $1,030.80 hit on March 17.

“We think the replacement cost of gold today is much higher than where the market is right now,” Hambro said, adding that even if the price reached the desired level it would have to be sustained for gold companies to invest.

“Just because it reaches that number doesn’t mean it’s going to change anything. We’re not going to see all gold mining CEOs building new projects. The price needs to average that over a decent period of time for them to start investing shareholder capital into new production assets,” he said.

The Gold fund’s top three holdings as at the end of last month were Australia’s Newcrest Mining (NCM.AX: Quote, Profile, Research), Canada’s Barrick Gold (ABX.TO: Quote, Profile, Research) and Kinross Gold (K.TO: Quote, Profile, Research), which together accounted for over 22 percent of the fund.

“In the gold space we are very much in a situation where production will continue to likely decline. There are not enough new gold discoveries to replace the gold being mined,” Hambro said.

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Gold Hits Record $1,009, Oil $111, Euro $1.56

Gold hits new record at $1,009

Bloomberg
March 14, 2008

Gold surged to a record $1,009 an ounce in New York as the Bear Stearns Cos. bailout and a plunging dollar increased demand for the precious metal. Silver also gained.

Bear Stearns got emergency funding from JPMorgan Chase & Co. and the New York Federal Reserve. The securities firm said its cash position had “significantly deteriorated.” The dollar fell to a record against the euro and a 12-year low against the yen. Gold has jumped 19 percent this year, while the Standard & Poor’s 500 Index fell 13 percent.

“Gold’s assault on $1,000 is happening for a good reason,” said James Turk, founder of GoldMoney.com, which had $337 million in gold and silver in storage for investors at the end of February. “Gold is not only an inflation hedge, it’s a catastrophe hedge. Gold is becoming increasingly important as the credit crunch continues to spiral out of control.”

Gold futures for April delivery rose $5.70, or 0.6 percent, to $999.50 an ounce on the Comex division of the New York Mercantile Exchange. The price reached the highest ever for a most-active contract at 10:45 a.m., topping yesterday’s record of $1,001.50. The metal has tripled in the past five years.

Silver futures for May delivery climbed 23.5 cents, or 1.2 percent, to $20.655 an ounce. The price has gained 38 percent this year.

“Gold at $1,000 is a clear sign of a lack of confidence in the dollar and the Fed’s handling of monetary affairs,” said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland.

Read Full Article Here

 

Oil Hits Record $111, Euro Reaches $1.56

AFP
March 14, 2008

The dollar struck a fresh all-time low against the euro Friday as gold prices traded close to record highs a day after topping 1,000 dollars for the first time on US economic woes.

Oil prices fell on profit-taking after striking an historic peak of 111 dollars per barrel Thursday.

The European single currency reached a record high of 1.5651 dollars in Asian trade Friday, prompting the EU presidency to voice deep concern.

In later European trading the euro stood at 1.5566 dollars, down from 1.5624 late on Thursday in New York.

Read Full Article Here

 

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Gold Peaks Above $861, Oil $100 a Barrel
Gold Peaks Above $861, Oil $100 a Barrel

Economist
January 3, 2008


TRADITIONALLY, the beginning of the year is a time for bargain-hunters to snap up excess stock on the cheap. Not, this year, on the commodity markets. On Tuesday January 2nd, the first business day of the new year, oil breached $100 a barrel for the first time. Gold, at the same time, reached a record price of over $861 an ounce. The immediate catalysts for the rising prices were ongoing turmoil in places like Nigeria and Pakistan and the continuing slump of the dollar. To those holding euros or yen, the weakening dollar makes oil and gold look cheaper; they can bid up prices in dollar terms without spending any more of their own currency. Moreover, gold, and nowadays oil too, is seen as a haven when the dollar is weak—so the latter’s drop may be accelerating the former’s rise.Gold is also seen as a haven more broadly, from political turmoil, inflation and all-round economic malaise. Gloomy news from America, where house prices are falling and manufacturing is contracting, have prompted fears of a full-blown recession. The economies of emerging markets in Asia and the Middle East are still chugging along, but analysts are cutting growth forecasts for them too. Normally, the worsening outlook for the world economy would prompt commodity prices to fall, on the assumption that demand for most goods will soon be slowing. But demand for oil continues to rise quickly in booming spots such as China and the Gulf states. These countries make matters worse by artificially inflating demand for petrol through subsidies or price caps, which leave consumers with little incentive to drive less even as the oil price surges.

Western oil companies, saddled with rising prices for everything from engineers to truck tyres—and in some cases, outright shortages—are struggling to pump more oil. They have also been excluded from the most promising terrain for exploration by nationalist regimes, which are increasingly reluctant to share their wealth with outsiders. Those same regimes seem in no hurry to increase their output, partly because they realise that their sluggishness is helping to keep prices high. But publicly, at least, the Organisation of the Petroleum Exporting Countries argues that oil at $100 is the result not of a shortage of supply but of financial speculation.

There might be some truth in that: in recent years, the volume of oil traded on markets such as New York’s Mercantile Exchange (NYMEX) has risen out of all proportion to the amount consumed. Hedge and pension funds and even individual investors have been piling into commodities of late. This influx of money could be exaggerating the market’s gyrations. Indeed, oil only topped $100 in a single transaction before falling back.

Politics is not helping either. A surge in violence in the oil-rich but restive Niger Delta in Nigeria over the New Year’s holiday helped to propel the oil price to three figures. Since the world has few idle oil wells, and relatively low stocks, even minor disturbances in producing countries prompt sharp jumps in the price. The traders at NYMEX, for example, pore over every diplomatic statement concerning Iran’s disputed nuclear programme to see if they can detect a heightening of tensions.

All this makes life particularly difficult for the world’s central bankers. High oil prices, after all, further blight the economic outlook by reducing consumers’ spending power. Yet they also stoke inflation, making it harder to cut interest rates. It is proving a gloomy new year for them too.

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Oil Prices Rise Near $99 As Temps Fall

Oil Prices Rise Near $99 As Temps Fall

AP
November 26, 2007

Oil prices rose to near $99 a barrel Monday with temperatures falling in the United States and Europe and continued weakness for the U.S. dollar.

The Thanksgiving holiday on Thursday marked the unofficial start of winter in the United States. Among other areas, southeastern New Mexico got up to 9 inches of snow and experienced colder than normal temperatures over the holiday weekend. Snow also fell in Germany over the weekend.

“The onset of cold U.S. weather is going to boost fuel demand,” said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Light, sweet crude for January delivery added 75 cents to $98.93 a barrel in electronic trading on the New York Mercantile Exchange, midday in Europe.

On Friday, the contract rose 89 cents to settle at $98.18 a barrel, besting the previous settlement record by 15 cents.

January Brent crude added 68 cents to $96.44 a barrel on the ICE Futures exchange.

Meanwhile, the dollar hit a new low against the euro Friday as speculation continued that the American credit crisis will lead to another cut in U.S. interest rates.

“The weakened U.S. dollar remains at record low levels and so we’ve got pricing trying to test $100 again,” Shum said.

Oil futures offer a hedge against a weak dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the U.S. currency is falling.

Nymex crude prices reached a trading record of $99.29 a barrel on Wednesday, and are within the range of inflation-adjusted highs set in early 1980. Depending on how the adjustment is calculated, $38 a barrel then would be worth $96 to $103 or more today.

“Almost anything could push prices higher from here and we have to expect to see a move to” $100 per barrel this week, said Peter Beutel, president of U.S. energy risk management firm Cameron Hanover, in a research note, listing a U.S. Federal Reserve interest rate cut, a weaker U.S. dollar, colder weather forecasts or “any petro-political problem” among the factors which could push oil prices to three digits.

“We have reached the point, though, where the inability to touch or break $100 this week would be seen as rather a spectacular failure,” Beutel wrote. “There is no reason for prices not to hit $100 this week.”

Shum said that data suggesting OPEC is increasing production more quickly than expected is likely to keep a temporary cap on oil prices.

Oil Movements, an oil tanker tracking firm based in Britain, reported that Organization of Petroleum Exporting Countries oil exports are likely to jump by an average of 720,000 barrels a day in the four weeks ended Dec. 8, more than the expected 500,000 barrels per day.

Oil prices rose 43 percent between August and early November on falling domestic inventories, concerns about supply disruptions overseas and, many analysts argue, speculative buying. But recent forecasts have suggested high prices are cutting demand.

Nymex heating oil rose 1.94 cents to $2.7236 a gallon (3.8 liters) while gasoline prices gained 1.70 cents to $2.484 a gallon. Natural gas futures rose 19.6 cents to $7.896 per 1,000 cubic feet.


Forex – Euro retreats after Friday’s failure at 1.50 usd

Forbes
November 26, 2007

LONDON (Thomson Financial) – The euro was a touch lower as the currency continued to retreat after failing to rise past the 1.50 usd level last Friday.

After hitting an all-time high of 1.4968 usd, there was not enough momentum to keep the euro flying. Additionally, the test of the key level came amid thin conditions with at least part of US traders still out after the Thanksgiving holiday on Thursday.

As trading resumed in earnest today, the euro found it harder going.

Read Full Article Here

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Oil Could Go To $100 A Barrel This Week

Oil Could Go To $100 A Barrel This Week

Wall Street Journal
November 5, 2007

After the price of oil edged further into record territory, the $100-a-barrel bears and bulls are poised for a showdown.

If the uptrend continues, market watchers say this could be the week that oil manages to punch through the symbolic level and eclipse the inflation-adjusted record of $101.70 reached in April 1980.

But some observers are dubious as to how long crude prices might stay there.

Benchmark crude futures have jumped 27% in the past three months on concerns of global-supply shortfalls, strong demand and a flood of investment from financial firms and speculative investors. The front-month December crude contract on the New York Mercantile Exchange settled at $95.93 a barrel Friday, an all-time nominal high.

[Crude]

“The market doesn’t seem to have done anything on the downside to threaten the uptrend,” said Tom Bentz, senior analyst at brokerage firm BNP Paribas Commodity Futures in New York. “As long it continues to hang in there like this, traders will continue to target higher levels.”

But the steep rise by crude-oil futures could be a setup for an equally dramatic fall, some market watchers say. “The bottom line is people are keying on this geopolitical tension and speculators are running the market higher,” said Mark Waggoner, president of Excel Futures, a commodities broker in Huntington Beach, Calif. “We probably are headed to a hundred bucks, but I would expect a violent correction very soon.”

Potentially chilling the rally are investors with long positions — essentially bets that oil prices will move higher — who see $100 as a finish line and not a new floor.

Peter Beutel, president of New Canaan, Conn., energy-risk advisory firm Cameron Hanover, expects oil prices to at least clear $98.50 and may reach $100. But that may form more of a peak than a plateau as traders ditch their long positions.

“I’m not as worried about new selling coming in and ending the bull market,” he said. “I’m more worried about all the longs deciding at once that the market has gone as far as it can.”

A large cluster of options held to buy crude at $100 a barrel could continue to act as a pull on prices toward that level, as big traders seek to push futures prices to the point where their options become profitable.

Last week’s rally took flight Wednesday after the U.S. Energy Information Administration reported big drops in crude inventories nationally and at Cushing, Okla., the delivery point for Nymex oil contracts. This week analysts say they will be watching inventories closely.

A decline in stocks at Cushing or nationally, “regardless of the magnitude, will be enough to keep this bull alive,” said Jim Ritterbusch, president of oil advisory firm Ritterbusch & Associates in Galena, Ill.

The prospect of a Turkish incursion into Iraq to attack members of the Kurdistan Workers’ Party, or PKK, has also weighed on crude prices in recent weeks.