Metals – Market Recap – Oct 5,2009

Bloomberg (Reported 10.5.09):
“Oct. 5 (Bloomberg) -- Gold, little changed in London today, may rise for a second day as a weaker dollar boosts demand for the precious metal as an alternative investment.

The dollar fell as much as 0.5 percent against the euro after Group of Seven finance chiefs refrained from calling for measures to stop the U.S. currency’s decline. The metal, which has gained in six of the past seven weeks, tends to rise when the dollar weakens.” Gold May Advance for Second Day as Weaker Dollar Stokes Demand

Reuters (Reported 10.5.09):
“TOKYO (Reuters) - Gold stayed above $1,000 an ounce on Monday as the dollar remained pressured after last week's jobs data pushed the currency down broadly on concerns the U.S. economic recovery may not be as robust as previously thought.

Traders remained wary of a sudden liquidation of speculative long positions in U.S. gold futures even after such positions eased slightly from record highs in the week ended September 29, putting a cap on prices.” Gold stays above $1,000 on softer dollar, ETF rises

NS Futures (Reported 10.5.09):
“After being oversold last week a temporary correction is expected…”
”While the gold market has consistently focused on the ebb and flow of the US Dollar recently, it was clear that the slack US Non Farm payroll report at the end of last week served to undermine gold prices….” Full Report