Daily Market Report from AmeriGold

Carol · 09-16-2008, 06:54 PM

Today's prices are down: Gold for 1 oz is around $777.10 and Silver $10.46

http://www.amerigold.com/index.php

We do not recommend any coins or precious metal items that we do not own ourselves.

Tuesday, September 16, 2008

Platinum slipped more than 9 percent on Tuesday to its lowest level since October 2006 as a weakening global economy hit demand from auto makers, with car sales dropping in Europe, China and the United States.

Platinum, mainly used in auto-catalysts, lost half of its value in the last six months from a record high of $2,290 an ounce in March as consumer confidence dipped and demand for cars weakened on the back of high fuel prices and weaker economies.

Spot platinum dropped to $1,055 an ounce, the lowest since October 2006, and was last quoted at $1,064/1,095 an ounce at 1420 GMT from Monday's $1,164.50.

"We continue to get absolutely dreadful news on car sales. said Stephen Briggs, commodity strategist at RBS Global Banking and Markets.

Demand for new cars in Europe fell by 7.3 percent in July and 15.6 percent in August compared with a year ago. Over the first eight months of the year, new car registrations in Europe fell by 3.9 percent.

Sales of passenger cars in China, the world's second-largest auto market, fell more than 6 percent in August.

"The idea of China making up the difference on slowdown elsewhere -- when you are talking about the automobile industry, that is plainly not true."

ACROSS-THE-BOARD SELLING

Gold fell nearly 2 percent alongside a sharp drop in oil as the dollar firmed ahead of a decision on interest rates by the U.S. Federal Reserve.

Although gold normally gains on safe-haven buying during financial crises, portfolio managers have been selling assets across the board after U.S. investment bank Lehman Brothers filed for bankruptcy.

Spot gold was 0.7 percent lower at $781.40/782.50 an ounce from a session low of $771.55 from Monday's close of $786.20. Earlier it touched a one-week high of $786.95.

Robin Bhar, analyst at Calyon, said oil and the dollar were weighing on gold.

"Although gold might be struggling in the short term, the longer this goes on, it should be positive," he said.

The dollar slid to a two-month low versus a broadly rallying yen as a wave of risk aversion sparked by the collapse of Lehman Brothers rippled across markets.

Crude oil prices slipped nearly $3 to a seven-month low as the escalating credit crisis reinforced fears that global economic weakness could further depress energy demand.

"You might see more people coming into the market on the long side looking to buy gold if financial conditions continue to deteriorate," Bhar said.

Precious metals were undermined on selling led by Asian investors returning from a three-day weekend.

Markets will closely watch the outcome of the Federal Reserve's meeting later in the day. Speculation of a rate cut is growing to help ease tensions in financial markets.

Investors and analysts will also scrutinise the Fed's statement on the outlook for growth in the United States.

ETF SELLING

Investors selling of gold held by exchange-traded funds also knocked confidence in the precious metal, analysts said.

ETF Securities said on Monday that the amount fo gold it held to back its Physical Gold PHAU.L exchange-traded commodity fell 16 percent last week to 1.551 million ounces.

The world's biggest gold-backed ETF, SPDR Gold Trust GLD, said its holdings fell more than 37 tonnes, or 5 percent, since the beginning of September.

"Index divestment and possibly ETF disinvestment may be weighing on gold for reasons of growing or new awareness of counter-party risks in owning these products," UBS analysts John Reade said in a note to clients.

Spot palladium tumbled more than 5 percent, falling in line with platinum to trade 4.3 percent lower at $221.50 an ounce.

Spot silver was trading 4.3 percent lower at $10.61/10.67 an ounce, from Monday's close of $11.08 after hitting an intra-day low of $10.46.

That is all for now

09-16-2008, 06:54 PM	#1
Carol Project Avalon Hero Join Date: Sep 2008 Location: Big Island, Hawaii Posts: 2,008	Daily Market Report from AmeriGold Today's prices are down: Gold for 1 oz is around $777.10 and Silver $10.46 http://www.amerigold.com/index.php We do not recommend any coins or precious metal items that we do not own ourselves. Tuesday, September 16, 2008 Platinum slipped more than 9 percent on Tuesday to its lowest level since October 2006 as a weakening global economy hit demand from auto makers, with car sales dropping in Europe, China and the United States. Platinum, mainly used in auto-catalysts, lost half of its value in the last six months from a record high of $2,290 an ounce in March as consumer confidence dipped and demand for cars weakened on the back of high fuel prices and weaker economies. Spot platinum dropped to $1,055 an ounce, the lowest since October 2006, and was last quoted at $1,064/1,095 an ounce at 1420 GMT from Monday's $1,164.50. "We continue to get absolutely dreadful news on car sales. said Stephen Briggs, commodity strategist at RBS Global Banking and Markets. Demand for new cars in Europe fell by 7.3 percent in July and 15.6 percent in August compared with a year ago. Over the first eight months of the year, new car registrations in Europe fell by 3.9 percent. Sales of passenger cars in China, the world's second-largest auto market, fell more than 6 percent in August. "The idea of China making up the difference on slowdown elsewhere -- when you are talking about the automobile industry, that is plainly not true." ACROSS-THE-BOARD SELLING Gold fell nearly 2 percent alongside a sharp drop in oil as the dollar firmed ahead of a decision on interest rates by the U.S. Federal Reserve. Although gold normally gains on safe-haven buying during financial crises, portfolio managers have been selling assets across the board after U.S. investment bank Lehman Brothers filed for bankruptcy. Spot gold was 0.7 percent lower at $781.40/782.50 an ounce from a session low of $771.55 from Monday's close of $786.20. Earlier it touched a one-week high of $786.95. Robin Bhar, analyst at Calyon, said oil and the dollar were weighing on gold. "Although gold might be struggling in the short term, the longer this goes on, it should be positive," he said. The dollar slid to a two-month low versus a broadly rallying yen as a wave of risk aversion sparked by the collapse of Lehman Brothers rippled across markets. Crude oil prices slipped nearly $3 to a seven-month low as the escalating credit crisis reinforced fears that global economic weakness could further depress energy demand. "You might see more people coming into the market on the long side looking to buy gold if financial conditions continue to deteriorate," Bhar said. Precious metals were undermined on selling led by Asian investors returning from a three-day weekend. Markets will closely watch the outcome of the Federal Reserve's meeting later in the day. Speculation of a rate cut is growing to help ease tensions in financial markets. Investors and analysts will also scrutinise the Fed's statement on the outlook for growth in the United States. ETF SELLING Investors selling of gold held by exchange-traded funds also knocked confidence in the precious metal, analysts said. ETF Securities said on Monday that the amount fo gold it held to back its Physical Gold PHAU.L exchange-traded commodity fell 16 percent last week to 1.551 million ounces. The world's biggest gold-backed ETF, SPDR Gold Trust GLD, said its holdings fell more than 37 tonnes, or 5 percent, since the beginning of September. "Index divestment and possibly ETF disinvestment may be weighing on gold for reasons of growing or new awareness of counter-party risks in owning these products," UBS analysts John Reade said in a note to clients. Spot palladium tumbled more than 5 percent, falling in line with platinum to trade 4.3 percent lower at $221.50 an ounce. Spot silver was trading 4.3 percent lower at $10.61/10.67 an ounce, from Monday's close of $11.08 after hitting an intra-day low of $10.46. That is all for now