June 11, 2010 - Gold bullion prices, after a three-day decline, looked up again today in New York, even as investors cashed in on the lower prices to buy gold. After hitting a record $1254.50 an ounce on June 8, gold bullion prices went down by 1.9 per cent during the last two days.
In fact, this caused the holdings in the biggest gold bullion-backed ETF in the world, SPDR, to go up by 7.61 metric tons to 1,306.14 tons yesterday – the highest in quite some time, taking the fund’s assets up by 15 percent this year.
The moment prices dropped, investors saw it as the ideal chance to buy more gold, said Bayram Dincer, commodity analyst at LGT Capital Management in Pfaeffikon, Switzerland. The steady high holdings and fresh entries into the exchange traded funds at the prevailing prices seemed to support gold bullion.
Gold futures for August delivery were up $2.40, or 0.2 percent, to $1,224.60 an ounce on the Comex in New York. Gold bullion also rose 0.6 percent this week. In London, gold for immediate delivery went up from $1,217.50 yesterday to $1,223.20 an ounce. Spot gold prices also saw a welcome increase.
Gold bullion prices have seen the longest stretch of increase since 1920, in spite of skepticism about the state of the European economy and slow growth. When Bloomberg surveyed over 25 analysts, traders and investors, seventeen predicted that gold prices will continue to rise over the next week, while five felt that prices would dip, and three remained neutral.
Citigroup predicts that silver, whose prices were up 0.2 percent at $18.395 an ounce, may outperform gold as an investment over the next few months, going up to $20.
