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Gold Investments Market Update - UBS: "Unprecedented'' Physical Demand in Past Three Weeks in Europe, India and Asia



-- Posted Thursday, 28 August 2008 | Digg This ArticleDigg It! | Source: GoldSeek.com

 

Gold

Dollar weakness, firm oil and continuing tension in the Caucasus are leading to gold remaining well bid this morning. Warnings from NATO to Russia to stay out of Ukraine and calls for the European Union to be ready for "hard headed engagement" with Moscow are not doing much to help confidence in already nervous markets.

Besides increasing geopolitical risk - the risk that mother nature and weather can pose is being felt again. Energy markets remain on edge as tropical storm Gustav is looking like it will become a hurricane. Crude oil and natural gas have risen on a forecast that Gustav will be the most damaging hurricane since Hurricane Katrina as it moves toward production platforms in the Gulf of Mexico.

And all this is happening against a backdrop of already very robust physical demand.

UBS has issued a buy recommendation this morning due to substantial long liquidation on the COMEX, the belief that the dollar is overbought and will resume its bear market and due to "unprecedented physical gold demand".

Today's Data and Influences

Economic focus in the US today is on the second estimate of Q2 GDP which incredibly is expected to see the growth estimate revised upwards. Weekly jobless numbers also feature.

Gold and Silver

Gold is trading at $832.60/833.30 per ounce (1100 GMT).
Silver is trading at $13.73/13.76 per ounce (1100 GMT).

PGMs

Platinum is trading at $1453/1463 per ounce (1100 GMT).
Palladium is trading at $292/298 per ounce (1100 GMT).

 

Financial Regulation: Gold & Silver Investments Limited trading as Gold Investments is regulated by the Financial Regulator as a multi-agency intermediary. Our Financial Regulator Reference Number is 39656. Gold Investments is registered in the Companies Registration Office under Company number 377252. Registered for VAT under number 6397252A. Codes of Conduct are imposed by the Financial Regulator and can be accessed at www.financialregulator.ie or from the Financial Regulator at PO Box 9138, College Green, Dublin 2, Ireland. Property, Commodities and Precious Metals are not regulated by the Financial Regulator

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: The value of investments may fall or rise against investors’ interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. Past experience is not necessarily a guide to future performance.

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-- Posted Thursday, 28 August 2008 | Digg This Article | Source: GoldSeek.com




 



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