By Miho Yoshikawa
TOKYO (Reuters) - Gold fell to below $1,050 per ounce on Friday as the dollar edged up, snapping a rally that took prices to all-time highs for three consecutive days.
Spot gold hit a record high of $1,061.20 on Thursday as the dollar's weakness increased bullion's traditional appeal as a hedge against the U.S. currency.
The dollar rose on Friday, with comments from Reserve Chairman Ben Bernanke that indicated monetary policy might have to be tightened as a recovery takes hold, helping to pull the greenback off 14-month lows against a basket of currencies.
Apart from its strong inverse correlation with the dollar, fears of inflation have also fuelled gold's rise to historic levels this week.
"I think gold's uptrend remains intact," said Shuji Sugata, a manager at Mitsubishi Corp Futures & Securities' research team.
Technical analysts at Barclays Capital have also said their outlook on gold was bullish, with a push towards $1,120 now a possibility.
"There are new participants that are being attracted to the market now as it rises," Sugata said.
He said these new inflows of money could be seen in areas including gold-backed exchange-traded funds and physical buying
By Miho Yoshikawa
TOKYO (Reuters) - Gold fell to below $1,050 per ounce on Friday as the dollar edged up, snapping a rally that took prices to all-time highs for three consecutive days.
Spot gold hit a record high of $1,061.20 on Thursday as the dollar's weakness increased bullion's traditional appeal as a hedge against the U.S. currency.
The dollar rose on Friday, with comments from Reserve Chairman Ben Bernanke that indicated monetary policy might have to be tightened as a recovery takes hold, helping to pull the greenback off 14-month lows against a basket of currencies.
Apart from its strong inverse correlation with the dollar, fears of inflation have also fuelled gold's rise to historic levels this week.
"I think gold's uptrend remains intact," said Shuji Sugata, a manager at Mitsubishi Corp Futures & Securities' research team.
Technical analysts at Barclays Capital have also said their outlook on gold was bullish, with a push towards $1,120 now a possibility.
"There are new participants that are being attracted to the market now as it rises," Sugata said.
He said these new inflows of money could be seen in areas including gold-backed exchange-traded funds and physical buying
Dec 10, 2009
Gold falls from record, dips below $1,050
Dec 6, 2009
Palace says it will no longer ‘tolerate’ intrusion by paparazzi
The Queen has issued a blunt warning that the Royal Family stands ready to take legal action against harassment and intrusion by paparazzi.
After years of what one aide yesterday called “a growing feeling of frustration” over repeated breaches of privacy, lawyers operating for the Queen have reminded newspapers of their obligations under the industry’s own code of practice.
Photographers will be closely monitored around the Sandringham estate in Norfolk, where the Queen and members of her family will gather for Christmas.
The use of telephoto lenses by paparazzi — who sometimes conceal themselves in the undergrowth or wear camouflage to snatch pictures from public roads near the estate — “will not be tolerated”, according to the aide.
Last Christmas there were a number of incidents, including publication of images allegedly showing the Earl of Wessex beating two gun dogs with a walking stick at Sandringham.
Prince William is also understood to have been dismayed that a shooting party with friends was spoilt by photographers “hiding in bushes”. Some members of the Royal Family blame the paparazzi for the death of his mother, Diana, Princess of Wales, in a car crash 12 years ago.
William has taken a keen interest in whether privacy laws have been broken by those following Kate Middleton, his girlfriend, over recent years. He came close to taking legal action when he and Ms Middleton were pursued by the paparazzi after leaving a nightclub.
Disclosure yesterday of the tougher approach towards intrusive photography renewed speculation that they might be planning to get engaged over Christmas. The bookmaker William Hill halved the price on such a prospect from 12-1 to 6-1. The palace, however, is playing down talk of an engagement and says it reflects long-standing concerns.
“We wrote to newspapers with a private letter two and a half months ago and you will have to ask The Sunday Telegraph [which run the story on its front page yesterday] why this is news right now,” said a senior official.
Paddy Harverson, the Prince of Wales’s communications secretary, was quoted by the newspaper saying: “Members of the Royal Family feel they have a right to privacy when they are going about everyday, private activities. They recognise there is a public interest in them and what they do, but they do not think this extends to photographing the private activities of them and their friends.”
The Republic Campaign, which calls for the monarchy to be replaced with an elected head of state, said the Royal Family must be open to scrutiny. “While everyone has a right to a level of privacy, the Queen cannot expect the media to dance to her tune,” said Graham Smith. “If people who claim a God-given right to head our nation are falling out of nightclubs, clearly there is a public interest.”
Nov 10, 2009
Gold rallies to fresh record, stocks up
NEW YORK (Reuters) - Gold climbed to a record on Thursday as the dollar struggled, while U.S. stocks settled higher after Alcoa (AA.N) began the third-quarter earnings season with an unexpected profit.
Major U.S. equity indexes rose nearly 1 percent, led by Alcoa, a day after the Dow component and the largest American aluminum producer posted its first profit after a string of quarterly losses. Alcoa cited improving metal prices and cost savings as the main reasons for its profitable quarter.
Alcoa is the first major company to release earnings in the U.S. third-quarter reporting season.
Its profit surprise also played a factor in world equity markets on Thursday, as investors have been scouring for signs of any fundamental improvement in organic growth. The MSCI world equity index .MIWO00000PUS rose 1.32 percent to 1,137.84, near the year's high of 1,150.42.
For their part, the Dow Jones industrial average .DJI was up 61.29 points, or 0.63 percent, at 9,786.87, while the Standard & Poor's 500 Index .SPX was up 7.90 points, or 0.75 percent, at 1,065.48. The Nasdaq Composite Index .IXIC was up 13.60 points, or 0.64 percent, at 2,123.93.
But gold stole the spotlight again.
The yellow metal topped $1,060 per ounce to mark a record high for the third session in a row, versus its late New York Wednesday quote of $1,043.70. It closed the day at $1,055.45.
The move in spot bullion has primarily been driven higher by the weakening dollar, which makes the dollar-denominated metal more attractive to investors.
In some currencies -- the high-flying Australian dollar, for example -- gold has actually fallen in price this year.
"Investors are turning toward gold as a hedge in dollar weakness," said Adrian Koh, an analyst at Phillip Futures in Singapore.
The dollar was down against a basket of major trading-partner currencies, with the U.S. dollar index down 0.69 percent at 75.966, a 14-month low and below a previous session close of 76.494.
The currency has been hit by a combination of expectations that U.S. interest rates will stay low for some time and a belief that the global economy is on the mend, easing the motivation behind last year's flight to dollar safety.
The euro was up 0.63 percent at $1.4778 from a previous session close of $1.4685, while against the Japanese yen, the dollar was down 0.15 percent at 88.45 from a previous session close of 88.580.
The Australian dollar jumped 1.7 percent to US$0.9063, still benefiting from this week's rate hike. It has now gained nearly 28 percent against the U.S. dollar this year.
Nov 8, 2009
United Commercial Bank is shut down, sold to East West BancorpThis creates by far the largest U.S. bank focused on the Chinese American market and the largest bank based in Southern California. United Commercial was the 120th bank to fail in the U.S. this year.This creates by far the largest U.S. bank focused on the Chinese American market and the largest bank based in Southern California. United Commercial was the 120th bank to fail in the U.S. this year.
This creates by far the largest U.S. bank focused on the Chinese American market and the largest bank based in Southern California. United Commercial was the 120th bank to fail in the U.S. this year.
Toppled by loan losses and misstated financial reports, San Francisco's United Commercial Bank was shut down by regulators Friday night and immediately sold to Pasadena's East West Bancorp, creating by far the largest U.S. bank focused on the Chinese American market.
US jobless rate rises to over 10%
Since the recession began in December 2007, the number of unemployed has risen by 8.2 million, while the jobless rate has risen from 4.9%.
President Barack Obama described the rise in unemployment as "sobering".
"I will not rest until all Americans who want work can find work," he added.
He also said he would be signing legislation to extend unemployment benefit, cut taxes for businesses and extend tax credits for home buyers.
Berlin all fired up for wall-to-wall partying
The policeman smiled back. Stretching away on either side, a chain of 1,000 wall-like slabs daubed with graffiti form a new 1.2-mile barrier from the Brandenburg Gate to Potsdamer Platz — now once again one of Europe’s busiest intersections.
Texan police officer Kim Munley who shot Fort Hood gunman hailed as a heroine
Major Nidal Hasan, an army psychiatrist due to be posted to Afghanistan, shot dead 13 people and wounded 30 others after opening fire with two handguns at Fort Hood yesterday afternoon.
But the death toll from the rampage could have been far worse had it not been for the actions of Sergeant Kimberly Munley, a civilian police officer stationed at the base who was the first on the scene as Major Hasan picked off his victims.
Sergeant Munley managed to hit Major Hasan four times but was herself hit by a bullet that passed through both her legs, according to witnesses.
Fort Hood shooting: President Barack Obama will travel to Texas for Fort Hood memorial service
A memorial service has been scheduled for Tuesday. The White House said Mr Obama and Michelle Obama, the First Lady, would be there. Mr Obama is due to leave the following day for a 10-day tour of Asia.
Earlier, he said the response to the tragedy had displayed "the best of America." He said: "Thursday's shooting was one of the most devastating ever committed on an American military base and yet, even as we saw the worst of human nature on full display, we also saw the best of America."
Nov 1, 2009
UPDATE: US Stocks Close Sharply Lower; DJIA Ends Month Flat
By Donna Kardos Yesalavich
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--U.S. stocks tumbled Friday, with Bank of America, JPMorgan Chase and Alcoa leading the Dow Jones Industrial Average's components lower as investors again grew concerned about the economy after the short-lived excitement over Thursday's good report on gross domestic product.
The Dow Friday posted its biggest one-day point drop since April 20, and ended October just 0.45 point above where it began. Other major measures, including the Standard & Poor's 500 and the Nasdaq Composite, ended the month in the red, marking their first monthly declines since February.
The Dow closed down 249.85 points, or 2.51%, at 9712.73, marking its 10th triple-digit movement this month. Five of them were down and five up, reflecting how volatile the market has gotten as investors try to get a handle on whether the 48% surge in the Dow since March can be justified by economic fundamentals. For the week, the Dow fell 259.45 points, or 2.6%, marking its second consecutive week in the red.
Banks broken up: Q&A
Three new banks are to appear on Britain's high streets as part of a major break-up of the sector to be announced by the Government this week, The Sunday Telegraph has learned.
Why is the government doing it?
Gordon Brown and Alistair Darling have little choice. Under European law, Royal Bank of Scotland (RBS), Lloyds Banking Group and Northern Rock have to pay a price for the billions of pounds of state aid they have received. However, there are likely to be smiles rather than frowns in Downing Street because gradually returning these troubled institutions to full private ownership is firmly on the to do list. The government’s stakes in RBS and Lloyds are also threatening to become an even bigger political headache should these banks shower their best performing staff with bonuses in the New Year. Expect to see the emergence of Williams and Glyn, the revival of TSB and the resuscitation of Northern Rock hailed by the Prime Minister as a return to an era of more sensible and conservative banking.
Who will own these new banks?
Pilots 'face same distractions as drivers'
"I have my own ideas about this, but I'm going to work with the folks at the FAA and our department to deal with this issue," LaHood said. "We're going to take a very close look at that entire issue."
The Obama administration and lawmakers have already expressed interest in targeting distracted driving, including the use of mobile devices while behind the wheel. LaHood held a summit meeting in September that brought together researchers, regulators and other experts on distracted driving.
WASHINGTON - The two airline pilots who overshot their destination by 150 miles have prompted the Obama administration to broaden its look at distracted driving to include distracted flying, Transportation Secretary Ray LaHood said today.
Oct 30, 2009
Flat incomes, weak consumer spending raise concern
WASHINGTON — Flat incomes suggest more weakness ahead in consumer spending, reinforcing concerns about a ho-hum holiday shopping season and a sluggish economic recovery.
"This recovery is going to be very weak. Consumers are in no position or mood to spend. Their wages are down and they can't get credit," said Sung Won Sohn, an economics professor at California State University's Smith School of Business.
Concerns about the economy sparked by disappointing government data on spending and incomes sent stocks down Friday, erasing the previous day's big gains. The Dow Jones industrial average lost about 250 points, and broader indexes also fell.
The Commerce Department reported that personal incomes were stagnant in September while the all-important wage and salary category dropped 0.2 percent, as unemployment rose.
Consumer spending — which accounts for 70 percent of total economic activity — dropped 0.5 percent, the first decline in five months and the biggest since December.
UPDATE: US Stocks Close Sharply Lower; DJIA Ends Month Flat
By Donna Kardos Yesalavich
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--U.S. stocks tumbled Friday, with Bank of America, JPMorgan Chase and Alcoa leading the Dow Jones Industrial Average's components lower as investors again grew concerned about the economy after the short-lived excitement over Thursday's good report on gross domestic product.
The Dow Friday posted its biggest one-day point drop since April 20, and ended October just 0.45 point above where it began. Other major measures, including the Standard & Poor's 500 and the Nasdaq Composite, ended the month in the red, marking their first monthly declines since February.
Hillary Clinton wraps up tough mission in Pakistan
The US secretary of state, Hillary Clinton, wrapped up one of the toughest missions of her diplomatic career tonight after three days of bruising encounters with Pakistanis enraged by US drone attacks in the tribal areas.
The visit was never going to be easy for Clinton, who flew into Islamabad with the goal of blunting anti-Americanism in a country that seethes with hostility towards Washington.
STIMULUS WATCH: Stimulus Jobs Overstated in Report
The White House is promising that new figures being released Friday will be a more accurate showing of progress in President Barack Obama's economic recovery plan. It aggressively defended an earlier, faulty count that overstated by thousands the jobs created or saved so far.
Ed DeSeve, serving as Obama's stimulus overseer, said the administration has been working for weeks to correct mistakes in early counts that identified more than 30,000 jobs paid for with stimulus money. He said a new stimulus report Friday should correct many mistakes an Associated Press review found that showed the earlier report overstated thousands of stimulus jobs.
"I think you'll see a pretty good degree of accuracy," DeSeve said in an interview.
White House spokesman Robert Gibbs downplayed errors in job counts identified by the AP's review, telling reporters, "We're talking about 4,000, or a 5,000 error."
Celebrating Stock Market Bears Take a Major Hit
Yesterday we get some strong volume and blow through the 50-day exponential moving average on the Nasdaq. We fall only a bit below on the S&P 500 (4 points) and hold above it on the Dow. We didn't have all 3 major indexes trading below the 50-day exponential moving averages and that's what you want to see if you believe the market is ready for deeper selling than has already occurred. In addition, you don't want to clear by as little as we did on the S&P 500 as that's not a true breakdown. 4/10th's of 1% is not sufficient to say it's all clear for the bears.
Stock Markets and Other Risky Assets Tumble on Recovery Fears
I concluded a post on stock markets over the weekend saying: “After equities’ seven-month climb, stock markets certainly look vulnerable for a decline. Two downside reversal days - on Wednesday and Friday - would seem to indicate that stocks could commence a pullback to work off the overbought condition, allowing fundamentals to reassert themselves.”
Source: StockCharts.com
Cockpit distractions go beyond laptops
The laptops that triggered two Northwest Airlines pilots to fly 91 minutes without talking to the ground may be relatively new technology, but distractions in the cockpit have led to accidents and incidents since the dawn of aviation.
As lawmakers and federal regulators called this week for banning laptops and certain other electronic devices in airline cockpits, experts who study why pilots make mistakes said the problem may be much more fundamental: People don't multitask very well.
Distractions ranging from a disgruntled passenger to a burned-out light bulb have been behind scores of crashes, according to federal accident reports and researchers.
U.S. economy stabilized but risks remain: Geithner
The government estimated that gross domestic product grew at an annual rate of 3.5 percent from July through September. Still, Geithner said the government must be ready to reinforce growth if needed to avoid risks of a credit crunch.
In a one-hour question-and-answer session at the Economic Club of Chicago, Geithner said the United States can't borrow-and-spend its way to health and pledged every effort to encourage an investment-led recovery.
Oct 29, 2009
Boeing picks South Carolina for Dreamliner plant
The move "will expand our production capability to meet the market demand for the airplane," Jim Albaugh, president and chief executive of Boeing Commercial Airplanes, said in a statement late Wednesday.
"This decision allows us to continue building on the synergies we have established in South Carolina with Boeing Charleston and Global Aeronautica," he said, the latter being a company 50-percent owned by Boeing.
Boeing's South Carolina plant already assembles and installs parts of the 787 fuselage sections. Almost all Boeing planes are manufactured at its Everett plant outside Seattle, in the northwest state of Washington.
Delivery of the first 787 Dreamliner -- to Japanese launch customer ANA -- is now set for late 2010, more than two years behind schedule.
