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Last Updated : 28 September 2012 at 19:05 IST

Sparkle in Gold is not just a weak Dollar story: Sharps Pixley

Source :Commodity Online

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The bullion dealer notes gold is on the way to a roughly 11% rise in the third quarter in dollar terms.

Theoretically, it would be a rare incident if gold could go below $1200/oz, its cost of pr...
The firm has also achieved all the targets in the production of Bank Notes, Coins, Securit..
Mark Thoma is a macroeconomist and time-series econometrician at the University of Oregon...
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  • NEW YORK (Commodity Online): The recent sparkle in gold is not just a weak dollar story,"said Sharps Pixley in a commodity research note.

    According to Sharps Pixley, the bullion dealer notes gold is on the way to a roughly 11% rise in the third quarter in dollar terms, although it remains around 7.5% below its all-time record hit slightly more than a year ago.

    However, gold prices have recently peaked in Indian rupee, euro and Swiss franc terms, indicating monetary stimulus particularly benefits gold and this is not just a weak dollar story, they added.

    Gold in euro terms hit a record high of 1,380 euros Thursday, says TD Securities in a research note.

    Global gold prices are trading near steady in early US dealings on Friday, as the market pauses following Thursday’s strong gains.

    The gold and silver bulls remain in a strong technical posture. The key outside markets—crude oil and the US dollar index--are also trading not far from unchanged price levels on the Friday morning.

    December gold last traded down $0.90 at $1,779.70 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold was last quoted down $0.10 an ounce at $1,778.00. December Comex silver last traded up $0.019 at $34.685 an ounce.

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