The big price drop Wednesday in the price of gold is not the beginning of a trend, say analysts, but rather a pause in a longer term bull market that has a lot farther to run.
Toronto's main stock index was little changed on Wednesday morning as sliding gold prices and profit-taking after the previous session's big rally offset optimism over bank earnings and positive U.S. data.
Gold prices dropped on Wednesday and were headed for their biggest two-day loss since the peak of the financial crisis, while the dollar rose as investors bet a speech by the Federal Reserve chairman later this week will not reveal any major central bank initiatives.
Gold prices dropped sharply Wednesday after a strong U.S. durable goods report, profit-taking by investors and encouraging news from the Congressional Budget Office about the deficit.
Gold bounced back on Wednesday after suffering its worst setback in 18 months, as risk appetite retreated on Japan's debt rating downgrade, while oil and metals were supported by hopes the U.S. would inject fresh stimulus to boost the economy.
Spot gold rebounded in Singapore overnight on Wednesday from its worst day in 18 months, while bullion's safe-haven appeal seemed to be waning for now with investors returning to riskier assets on hopes of more stimulus for the U.S. economy.
For Eriko Ebina, standing outside a downtown Tokyo medical equipment store that has a side business buying gold, the recent surge in prices for the precious metal was just too tempting.
South Africa's Harmony Gold Mining Co , the world's fifth-largest gold producer, said on Wednesday output for its 2012 financial year should rise to between 1.45 million ounces and 1.55 million from around 1.3 million in 2011.
Gold prices retreated in choppy trade on Tuesday after earlier hitting record highs as a recovery in appetite for assets seen as higher risk, such as stocks, took the steam out of a rally that many saw as overdone above $1,900 an ounce.
Gold prices were falling steadily late Tuesday in electronic trading as investors took profit from recent gains and bought stocks in expectations that the Federal Reserve will intervene in the bond market to give the anemic U.S. economy a lift.
Gold prices retreated more than 1 percent from record highs on Tuesday as a recovery in appetite for assets seen as higher risk, such as stocks, took the steam out of a rally that many saw as overdone above $1,900 an ounce.
Spot gold soared to an all-time high above $1,910 on Tuesday, scoring a record top for a fourth consecutive session, as persistent worries about global economic growth burnished bullion's safe-haven appeal.
Pawnbroker H&T Group Plc said it expected full-year results to be above the top end of current market expectations, driven mainly by surging gold prices that boosted its first-half pretax profit.
Latin American precious metals miner Hochschild Mining posted its highest-ever first-half profit, driven mainly by strong gold and silver prices, and said it was on track to meet its full-year production target.
Vietnam's central bank has authorized at least one domestic firm to import more gold to help cool soaring prices and state-run newspapers said it may open the market to unlimited imports to narrow the gap between local and world quotes.
Gold prices retreated more than 1 percent from record highs on Tuesday as a recovery in appetite for assets seen as higher risk, such as stocks, took the steam out of a rally that many saw as overdone above $1,900 an ounce.
The Shanghai Gold Exchange said on Tuesday that it will raise trading margins on three gold spot-deferred contracts to 12 percent from 11 percent from Aug. 26 to limit trading risks following recent wild price swings.
South Africa's government bonds took a breather on Monday, with yields coming off record lows as some dealers cashed in their holdings after a strong rally last week.
Moves by the Swiss National Bank to curb strength of the Swiss franc will fuel investors' insatiable demand for gold, adding to its relentless rise to new record highs as confidence in the franc as a safe store of value dwindles.
Miners helped Britain's bruised FTSE 100 stage a recovery on Monday, with Randgold Resources boosted by bullish gold prices and broker comment, and Anglo American up as it considered a bid for Australia's Macarthur Coal.
Gold prices rallied toward $1,900 an ounce on Monday as concerns over the global economic outlook fueled interest in the precious metal as a haven from risk and due to talk that weak U.S. growth could spark a further round of monetary easing.
European stocks extended four weeks of losses on Monday, tracking jittery Asian shares lower, while gold shot to new highs as investors worried about the sluggish U.S. economic outlook and Europe's festering debt crisis.
