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Updated on : 8:08 am GMT | Wednesday 11th of September 2016 11
 
Issued By Business & Finance Group | Dubai Media City | Issue No.305
News Archive
Emerging markets rush turning into secular move
Business & Finance Club - London : Investors caught in the middle of simmering global currency tensions are finding little option but to grab anything that is emerging markets as low rates and a falling dollar feed into a rush into high yielding assets.
Stocks up as Fed easing view grows
Business & Finance Club - New York : The dollar slid to a 15-year low against the yen and Asian stocks rose on Monday as U.S. jobs data boosted the chances of easier U.S. monetary policy and IMF and G7 meetings produced little to ease global currency tension.
Gold rises towards $1,350/oz as dollar languishes
Business & Finance Club - LONDON : Gold prices rose back toward $1,350 an ounce in Europe on Monday and silver touched a new 30-year high as expectations
Bangladesh issues stock alert
Business & Finance Club - Dhaka: Bangladesh's two stock exchanges yesterday issued a red alert, warning investors against a bubbling bourse, fearing these would burst soon unless urgent defusing measures were taken.
China makes big push to expand its yuan business in Hong Kong
Business & Finance Club - Beijing : When China began its reform process 30 years ago, no part of the polity, economy or society remained untouched — including Buddhist temples which were rebuilt on elaborate scales to allow a sliver of religious freedom.
Gold rises towards $1,350/oz as dollar languishes

Business & Finance Club - LONDON : Gold prices rose back toward $1,350 an ounce in Europe on Monday and silver touched a new 30-year high as expectations the United States will introduce further monetary easing undermined faith in the dollar.

Spot gold was bid at $1,347.30 an ounce at 5:31 a.m. ET, against $1,343.25 late in New York on Friday. U.S. gold futures for December delivery rose $2.90 an ounce to $1,348.20. Spot gold is still within sight of last week's record $1,364.60.

The dollar slipped on Monday after world finance ministers failed to reach agreement on currency imbalances at a series of meetings this weekend, leaving the U.S. Federal Reserve set to pursue loose monetary policy to support its ailing economy.

"We don't seem to have any agreement on any sort of currency accord," said Citi analyst David Thurtell, saying gold's inverse link to the dollar had been particularly strong in recent weeks. "Gold has pretty much stuck to tracking dollar moves."

Historically a weaker dollar boosts gold as it makes dollar-priced commodities cheaper for other currency holders, and lifts the metal's appeal as an alternative asset.

This correlation weakened early this year as both gold and the dollar benefited from concerns over European sovereign debt levels. However, it has now reasserted itself.

"Precious metals... continued to benefit from a weak U.S. dollar and the "race to the bottom' in global currency markets," said Morgan Stanley in a note.

"We view QE (quantitative easing) and its monetary consequences as an unequivocal benefit for gold and silver in particular, as investors seek out their role as stores of value in times of fiat currency risk."

As well as currency effects, gold is being supported by expectations investors will add to their bullion holdings as a portfolio diversifier, both in the private and official sectors.

Russia's central bank has bought over 100 metric tons of gold on the domestic market this year, board member Sergei Shvetsov said on Monday, and speculation is rife that a number of other central banks, chiefly in Asia, are set to add to their holdings.
 

 
 

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