Gold May Advance as Investors Return After Last Week’s Rout; Silver Gains
Gold may extend gains for a second day on speculation that investors will return to commodity markets as concerns over the global economic recovery eased and the dollar weakened versus major currencies. Silver advanced. Immediate-delivery gold was little changed at $1,495 an ounce at 8:53 a.m. in Singapore after rallying 1.4 percent on May 6, paring last week’s loss to 4.4 percent. Cash silver rose as much as 1.2 percent to $36.0413 an ounce before trading at $35.77. Silver futures jumped 1.7 percent. The Standard & Poor’s GSCI Index of 24 commodities declined 11 percent last week, the most since December 2008, and erased all the gains since mid-March, led by a 27 percent plunge in silver futures. The dollar fell as much as 0.4 percent against six major currencies today. “Gold and silver may regain strength as traders perceive last week’s commodities washout to be excessive and it isn’t viewed as a trend reversal,” said Park Jong Beom, Seoul-based trader with Tongyang Futures Co. air max 2011 “There’s no change in the outlook for a weaker dollar as well.” The value of all 24 commodities tracked by the S&P GSCI index was about $805 billion on May 6, compared with $891 billion on April 29, according to data compiled by Bloomberg on the number of outstanding contracts and prices of futures closest to delivery. Combined holdings of exchange-traded products backed by precious metals fell to $119 billion from $132 billion, the data show. American employers added more jobs than forecast in April and previous monthly gains this year were revised up, easing concern the economy is cooling.juicy couture outelt Payrolls expanded by 244,000 last month, the biggest gain since May 2010, after a revised 221,000 increase the prior month, the Labor Department said on May 7 in Washington. “We see no reason to panic about recent price declines,” Monty Guild, chief executive officer at Guild Investment Management Inc., wrote in a note last week. “Nothing has changed, except for the fact that some highly-leveraged speculators have been forced to sell. After the panic has ended, buying opportunities at low prices will abound.” Immediate delivery palladium fell 0.4 percent to $718 an ounce, while platinum rose 0.2 percent to $1,789.50 an ounce.