Metals – Market Recap – Oct 7,2009

Bloomberg (Reported 10.7.09):
“Oct. 7 (Bloomberg) -- Gold’s rally to a record shows commodity investors remain concerned that the U.S. economic recovery will spur inflation even as Wall Street forecasts and government bonds suggest stable prices.

Bullion has jumped 19 percent this year, heading for a ninth annual gain, after futures touched a record $1,045 an ounce yesterday and extended gains today amid rising demand for a hedge against inflation and a weaker dollar. Economists surveyed in the past month expect U.S. consumer prices to fall 0.5 percent this year, the first drop in five decades. ” Gold Rise to Record Shows Investors Split With Banks (Update1)

Reuters (Reported 10.7.09):
“LONDON (Reuters) - Gold hit another record high on Wednesday as the dollar slipped and global stocks rose for the third day running, erasing their losses in October.

Investors continued their scramble for yield, lifting the Australian dollar to 14-month highs on the prospects for higher interest rates after Tuesday's tightening.” Gold at new highs, world equities gain

NS Futures (Reported 10.6.09):
“Expectations of a sustained slide in the dollar give the bulls control…”
”With a fresh new high for the move overnight and the market seemingly poised to reach up toward the highest level since the early 2008 peak, it would seem like the bull camp has initial control….” Full Report