Metals – Market Recap – Oct 12,2009

Bloomberg (Reported 10.12.09):
“Oct. 12 (Bloomberg) -- Gold, little changed in London today, may decline as the dollar advanced against global currencies and some investors sold after the metal’s jump to a record last week.

The Dollar Index, a six-currency gauge of the greenback’s value, strengthened for a second day, as traders judged the measure’s drop to an almost 14-month low on Oct. 8 was overdone amid speculation the Federal Reserve will withdraw stimulus measures. Bullion reached an all-time high of $1,061.55 an ounce on Oct. 8 and has advanced 19 percent this year. ” Gold May Fall as Rally to Record, Stronger Dollar Spur Sales

Reuters (Reported 10.12.09):
“SINGAPORE, Oct 12 (Reuters) - Gold edged up near last week's record high on Monday but the dollar's rebound as well as worries about falling jewellery demand in main consumer India were seen likely to limit gains.
Gold gained nearly 5 percent last week as dollar weakness pushed gold to a series of record highs. Bullion, which attracts safe-haven buying in times of uncertainties, had its best weekly performance in nearly half a year.” PRECIOUS-Gold ticks higher near record, firm dollar weighs

Wall Street Journal (Reported 10.12.09):
“Shares of Zhongjin Gold, Shandong Gold-Mining, Jiangxi Copper, Yunnan Copper, Aluminum Corp. of China and Tongling Nonferrous Metals Group all jumped by their daily 10% limit during the session. In Hong Kong, shares of Aluminum Corp. of China rose 0.2% and Jiangxi Copper fell 1.2%.

Spot gold was recently down $9.60 from New York levels to $1,045.30 after a string of recent gains. UBS analyst Jo Battershill noted that prices at current levels did not look sustainable due to poor fundamentals and flagging demand for jewelry, which comprise 60%-70% of demand for the metal.” Resources Lead; China Surges

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