US Dolar, Strength, Weakness and the Price of Gold

When the US Dollar gets stronger, it takes fewer dollars to buy any commodity that is priced in $USD. When the US Dollar gets weaker it takes more dollars to purchase the same commodity.

The price of all US Dollar denominated commodities, like gold, will change to reflect the fact that it will take fewer or more dollars to buy that commodity. So it’s quite possible, in fact it’s almost always the case that a portion of the change in the price of gold is really just a reflection of a change in the value of the US Dollar. Sometimes that portion is insignificant. But often the opposite is true where the entire change in the gold price is simply a mathematical recalculation of an ever-changing US Dollar value.

When the dollar gets strong, gold appears to go down, and vice versa. That accounts for part of the fluctuations that we see in the value of gold.

The other part is an actual increase in the supply or demand for gold. If the price is higher when being measured not only in US Dollars, but also in Euros, Pounds Sterling, Japanese Yen, and every other major currency, then we know the gold demand is higher and it has actually increased in value.

Consequently, if gold is higher in US Dollars while at the same time cheaper in every other currency, then we can conclude that the US Dollar has weakened, and that gold has actually lost value in all other currencies. But the price, because it is being quoted in $USD will be higher and give the illusion of gold becoming more valuable. In such a case the devaluation of gold, due to increased supply on the market, is camouflaged by a weakened US Dollar.

Our feature on kitco.com breaks the change of the price of gold into 2 components. One part shows you how much of that change can be attributed to US Dollar strength, or lack of it. The other portion is indicative of how much the price changed as a result of normal trading. Interestingly whatever changes happen to the price of gold as a result of US Dollar strength/weakness also occurs to every other US Dollar denominated commodity by the exact same proportion

P.M. Kitco Metals Roundup: Gold Ends Down, But Up from Daily Low

April gold futures closed down $8.10 at $1,099.50 Monday. Prices closed near mid-range after hitting a fresh four-week low in early trading. A stronger U.S. dollar index in early trading, as well as lower crude oil prices, helped to press gold prices lower. However, as the session progressed the dollar index backed off its highs and crude oil prices moved above unchanged, which did allow gold to move up from its session low.

The debt problems in Greece continue to plague the Euro currency, which in turn has also weighed on the gold market recently. The Euro hit a fresh three week low Monday following remarks from German Chancellor Merkel indicating this week's European Union summit may not produce an aid package for Greece.

The specter of rising interest rates in major world economies has spooked the gold bulls a bit, following last Friday's move by India's central bank to raise interest rates. China could be the next country to further raise its interest rates to ward off inflationary pressure.

The afternoon London gold fix was $1,097.25 versus the previous London P.M. fix of $1,105.50.

Some near-term technical damage has been inflicted in gold futures with Monday's follow-through selling pressure from Friday's solid losses. A six-week-old uptrend on the daily bar chart has been negated. Prices are now in a fledgling three-week-old downtrend on the daily bar chart for April Comex gold. Bulls' next upside technical objective is to produce a close above solid technical resistance at last week's high of $1,133.90. Bears' next downside price objective is closing prices below solid technical support at $1,088.50. First resistance is seen at Monday's high of $1,108.60 and then at $1,120.00. Support is seen at Monday's low of $1,092.10 and then at $1,088.50. Wyckoff's Market Rating: 5.0.

May Comex silver futures closed down 9.7 cents at $16.935 an ounce Monday. Prices closed nearer the session high after hitting a fresh three-week low early on. The key "outside markets" were in a bearish posture for silver early in the session, but then turned into a bullish posture as the session progressed, with crude oil and stock indexes rallying, while the U.S. dollar index dropped below unchanged. Some chart damage has been inflicted in silver recently, as prices posted a bearish weekly low close on Friday and Monday's follow-through selling pressure negated a six-week old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $16.00. Bulls' next upside price objective is closing prices above solid technical resistance at the March high of $17.665 an ounce. First resistance is seen at Monday's high of $17.01 and then at $17.25. Next support is seen at $16.75 and then at Monday's low of $16.62. Wyckoff's Market Rating: 5.0.

May N.Y. copper closed up 80 points at 338.05 cents Monday. Prices closed nearer the session high. The key "outside markets" were in a bullish posture for copper by the end of trading Monday, as crude oil prices were firmer, U.S. stock indexes firmer and the U.S. dollar index was weaker. The copper market bulls have the overall near-term technical advantage. However, prices have been trading in a sideways fashion for three weeks. The next downside price objective for the bears is closing prices below solid technical support at last week's low of 329.00 cents. Bulls' next upside objective is pushing and closing prices above solid technical resistance at the March high of 348.70 cents. First resistance is seen at 340.00 cents and then at last week's high of 343.60 cents. First support is seen at 335.00 cents and then at Monday's low of 331.05 cents. Wyckoff's Market Rating: 7.0.

kitconews.com

Reasons why Malaysia is not in a Recession

See what’s our Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz says about Malaysians strenghts. Below are the most interesting part.

If we were compare the current economic condition to that of the previous crisis, how bad is it for Malaysia and globally?

We need to separate the two. We are not in a recession and we don’t expect to be in one. Half the world will likely be in a recession. We are the other part that expects to still see growth because there are real economic activities happening.

You have to make a distinction between the stage and crisis. In our case, we took action very early so there is the potential for containing the severity of the crisis.

Last year was a very good year for the economic and capital markets. We had significant inflows. We saw a build-up of our reserves to more than US$120bil and our exchange rate had appreciated sharply to RM3.15.

What is the maximum amount that can go out under short term flows?

Indian festival 'to raise gold jewellery demand by 30%

Tuesday, 16th March 2010

The onset of a traditional Indian festival is expected to raise the demand for gold jewellery in the country by up to 30 per cent, according to reports.

Akshaya Tritiya commences on May 16th and is a Hindu festival which marks the birthday of Lord Parasurama and is traditionally celebrated as the commencement of a period of good fortune for the year ahead, Diamond World reports.

"Gold has always been inherent to Indian festivals for its symbolism of auspiciousness and prosperity," states the site.

It goes on to add that the event traditionally inspires consumers to purchase gold jewellery and therefore sales of pieces crafted from the precious metal are expected to rise by between 25 and 30 per cent during the festival period.

Dominic Schnider, analyst for UBS, tells the National Post that gold jewellery demand in India has already begun to pick up and he expects to see a 20 per cent increase in sales compared to 2009.

New Agent ai- Love Gold Group

Selamat datang kepada en Johari dari JUPEM KL dengan menjadi agen terbaru. Berjawatan Penolong Pengarah dan selalu keluar negara ke Indonesia.

Kepada En Johari kembangkan sayap ke Indonesia dan cari rakan niaga disana yaa...

Kepada yang tinggal sepanjang Rembau ke Seremban dan Putrajaya bolehlah menghubungi beliau di talian 019 696 7810 untuk mendapatkan emas, silver atau jewellery dari beliau.

Apa itu Spread?

Today i would like to share some info regarding how to culculate gold spread price

Before we can culculate the "spread" we should know the meaning itself.

Sebelum kita boleh mengira harga "spread" emas kita kena tahu lah dulu apa itu spread.

Spread ia a difference between buy and sell. This sell price is set by the seller whom sell the gold to us. While buy price the seller that sell gold to us buy it back when we inntend to sell it back.
Spread ialah perbezaan antara harga jualan dan harga belian emas. Harga jualan ialah harga yang syarikat atau institusi yang menjual emas gunakan semasa menjual emas kepada kita. Manakala harga belian ialah harga yang syarikat atau institusi yang menjual emas gunakan semasa membeli semula emas daripada kita.

So if u intend to buy a gold look for the lower gap between buy n sell. This is the best for you. Also normally if you look at gold shop they always fix the current / same gold price up to sometimes 2 weeks eventhough current price is lower than publish at their store!!!

Jadi kalau anda nak beli emas, institusi yang menjual emas dengan spread harga terendah adalah yang terbaik untuk anda. Juga perhatikan di kedai emas kebanyakkan harga yang diletakkan adalah tetap kadangkala sehingga 2 minggu walaupun harga semasa adalah lebih!!!

PD = Public Dinar

Spread Harga 1 Dinar

We Sell = RM 564.00 --> Harga PD jual dinar emas pada kita
We Buy = RM 530.00 --> Harga PD beli balik dinar emas daripada kita
Harga Spread = Harga "We Sell" - Harga "We Buy"
Spread = RM 564.00 - RM 530.00 = RM 34
Peratus Harga Spread = (Harga Spread / Harga "We Buy") x 100Peratus Harga Spread = (RM 34 / RM 530) x 100 = 6.41%

Spread Harga 5 Dinar

We Sell = RM 2810.00 --> Harga PD jual dinar emas pada kita
We Buy = RM 2655.00 --> Harga PD beli balik dinar emas daripada kita
Harga Spread = Harga "We Sell" - Harga "We Buy"Spread = RM 2810.00 - RM 2655.00 = RM 155
Peratus Harga Spread = (Harga Spread / Harga "We Buy") x 100
Peratus Harga Spread = (RM 155 / RM 2487) x 100 = 5.83%
Spread Harga 10 DinarWe Sell = RM 5240.00 --> Harga PD jual dinar emas pada kita

Spread Harga 10 Dinar

We Sell = RM 5595.00 --> Harga PD jual emas pada kita
We Buy = RM 5315.00 --> Harga PD beli balik dinar emas daripada kita
Harga Spread = Harga "We Sell" - Harga "We Buy"Spread = RM 5595.00 - RM 5315.00 = RM 280
Peratus Harga Spread = (Harga Spread / Harga "We Buy") x 100
Peratus Harga Spread = (RM 280 / RM 4978) x 100 = 5.26%

Jadi kalau nak beli dinar, semakin besar dinar tersebut semakin kecil spreadnya. Maka semakin kecil spread harga semakin tinggi keuntungan anda. Sama juga dengan jongkong emas Public Gold (PG). Semakin berat emas, semakin kecil spread harga.

Jadi saya berharap anda mendapat sedikit pengetahuan mengenai emas ini. Saya harap catatan ini telah membantu anda bagaimana untuk mengira spread harga emas. PG dan PD adalah antara institusi yang menjual emas dengan spread yang terendah. Jika anda beli barang kemas atau jongkong emas daripada kedai emas biasa spread harga boleh menjangkau antara 15% sehingga 25%. Jadi mana lebih baik??? Pilihan difikiran anda...

Space & Aeronautics

Without gold, man wouldn’t have visited the moon. Gold, in the form of sheets 0.15mm thick, are used in space programmes as a radiation shield. Because gold is such an effective reflector, it deflects the burning heat of the sun.

Gold is central to safe space travel, so it’s demand has obviously grown as the space industry has. For example, more than 40.8 kilograms of gold was used in the construction of the famous US Columbia space shuttle, mainly in brazing alloys, fuel cell fabrication, coated plastic films and electrical contacts.

Nanotechnology

Scientists working in nanotechnology have tended to build their nanostructures using carbon, which actually attaches itself to other substances more or less indiscriminately, whereas gold is much more reliable in that respect. JP Behrens of wealthdaily.com has described gold’s advantages:

‘Unlike carbon, gold doesn't attach to everything, but only to specific areas. It finds points to attach to, and limits where it settles. Once it chooses to settle, technicians can find the spots and attach materials to them with ease... This new precision allows nano-architects to use more meticulous actions in building newer materials faster.

From Gold.org

Medicine

In the medical field, gold is used mainly to treat rheumatoid arthritis and liver, eye and ear diseases, as well as anergia (tiredness and depression). Gold belongs to a group of drugs used to slow down rheumatoid arthritis. These drugs are known as DMARDs (disease-modifying anti-rheumatic drugs), and can also help ease the pain and swelling in joints.

Gold may have been used to treat rheumatoid arthritis for more than 70 years, but scientists don't quite know why it works. Some think that it stops the immune system from attacking your joints, because although your immune system normally protects your body against infection, with rheumatoid arthritis, it also damages the lining of joints.

From Gold.org

Food n Drinks

In some Asian countries, gold is used in food and drink, from fruit jelly snacks to coffee. Japan's gold leaf production was based in Kanazawa, and visitors can still find gold leaf shops and workshops selling green tea, and even candy, with gold leaf.

Europeans have included floating bits of gold leaf in bottle of liquor for centuries, at least since the late 1500s. Danziger Goldwasser, originally from Poland, which has been produced since 1598! The trend has become more popular in the US in recent years, in liquors such as Goldschläger.

Environmental

Due to its unique chemical and metallurgical properties gold is has a vital role to play in future technologies aimed at reducing pollution and energy consumption.

Examples include:

• Water Purification
• Mercury Control
• Diesel Emission Control

The recent announcement by U.S. company Nanostellar that they have developed an automotive pollution control catalyst for diesel engines that contains gold, as well as the traditional platinum and palladium ingredients, is a major step-forward in cost effective emission control.

'Green' Chemistry

Green chemistry, also called sustainable chemistry, is a chemical philosophy encouraging the design of industrial chemicals and processes that reduce or eliminate the use and generation of hazardous substances. The use of gold as a catalyst has a major role to play in green chemistry

From Gold.org

Engineering

Gold is used in a myriad of engineering applications including brazing alloys, as a lubricating coating and in electrical applications like potentiometers and spark plugs

In a number of high-tech applications, engineers need to specify gold. This might, for example, be because they need a great lubricating material and gold has been used as lubricant in a number of engineering applications based on its resistance to cold welding.

In another field, gold–based brazing alloys are used in industrial brazing, offering improved resistance to oxidation, good mechanical properties of joints at elevated temperatures, and excellent corrosion resistance in challenging environments. It has also been used as a thin coating in building glazing to reflect heat radiation, keeping buildings cool in summer and warmer in winter.

From Gold.org

Electronics

Did you know the humble touchtone telephone typically contains 33 gold-plated contacts? Gold’s main role in electronics is in contacts, switches, relays and connectors. Contacts are electroplated with a very thin film of gold.

This touch of gold on a contact ensures rapid dispersion of heat, and also works to stop oxidation or tarnishing at extreme low or high temperature, providing an atomically clean metal surface with an electrical contact resistance close to zero.

Gold's other main role in electronics is in semiconductor devices, where fine gold wire or strip is used to connect parts such as transistors and integrated circuits, and in printed circuit boards to link components. Again, the need for reliable connections makes gold indispensable.

This bonding wire is one of the most specialised uses of gold; it’s highly refined to more than 99.9% purity, and the wire has a typical diameter of one hundredth of a millimetre.

From Gold.org

Dentistry

Gold has been used in dentistry for almost 3000 years. The Etruscans in the 7th century BC used gold wire to fix false teeth when their own were lost. In the 16th century an early dental textbook recommended gold leaf for filling cavities.

Gold's malleability and resistance to corrosion make it perfect for dental use, although its softness means that it needs to be alloyed to reduce wearing. The most common companion metals are platinum, silver and copper.

In recent years the price of gold has resulted in a trend towards cheaper alloys (with as little as 30% gold) and towards palladium-based alloys which contain scarcely 2% gold. Gold alloys have also suffered competition from new techniques such as ceramic dental crowns.

In addition, social security payments for gold dental work have come under tighter scrutiny; reductions in such insurance payments make gold use more price-sensitive. These factors initially contributed to a sharp fall in gold use by the dental sector, from 64 tonnes in 1980 to 48 tonnes in 1987. However, there has since been a recovery because of its non-allergic properties; demand has revived to 60 tonnes annually.

Japan is the leading dental gold fabricator, accounting for roughly 28% of the market, followed by Germany and the United States. There is significant unrecorded use, however, in Asia and Latin America where it’s not unknown for dentists to melt down gold coin to make their own alloy.

From gold.org

Decoration

Gold is used decoratively in all sorts of contexts, from costume jewellery, watchcases, pens and pencils to spectacle frames and bathroom fittings. Demand for gold from this sector is around 90 tonnes per year, and is used in various forms, such as’ rolled gold’ and ‘gold fill’.

Visually, the most spectacular use of decorative gold is gold leaf, which has been used for centuries to adorn the domes or ceilings of public buildings, mainly because its resistance to corrosion means it will outlast paint by many years.

Gold's ability to reflect heat in summer (and retain it in winter) has also led to the use of gold-coated glass in several modern buildings, especially in North America; one ounce of gold typically covers one thousand square feet of glass. This reflective glass can cut cooling and heating costs by 40%.

Gustav Klimt, the Austrian artist behind such masterpieces as ‘The Kiss’, is famous for his use of gold leaf. In fact, his father was even a gold engraver, although not a particularly successful one. But does the gold in Klimt’s paintings make the work more glamorous? Well, his 1907 ‘Portrait of Adele Bloch-Bauer’ was recently bought for a record-breaking £73 million, so some people think

so!

From Gold.org

Catalysts

Catalysts are substances or materials which accelerate the rate of a chemical reaction without being consumed by the reaction themselves. They’re an essential component of many different industrial processes used to produce chemicals, foodstuffs and other materials. Perhaps one of the first intentional uses of catalysis was in the fermentation of sugar to make alcohol.

Another common example is the use of catalytic converters on cars, to control exhaust emissions.Until recently, most researchers had overlooked gold as a possible industrial catalyst. However, there is now a growing anticipation about gold’s potential for catalysing industrial reactions, largely thanks to the recent work of Graham Hutchings at the University of Wales, and Masatake Haruta from AIST in Japan.

One of the most remarkable things about catalysis by gold is the low temperature at which it becomes functional. Gold catalysts operate best between 200-350K°, whereas platinum needs temperatures between 400-800K° to work properly. Gold also offers the potential to catalyse new reactions, and can in some cases be surprisingly cost-effective.

From Gold.org

Beauty

Gold nanoparticles are finding use in a wide range of cosmetic and beauty applications. Korean nanotechnology company Nano-Vision Tech has recently been assigned with an International Nomenclature Cosmetic Ingredient (INCI) designation for its Nano gold material.

The assignment was made by the industry body The Cosmetic, Toiletry and fragrance Association (CTFA). Nano-Vision Tech are supplying the Nano gold for use in soap, hair tonic and face masks.

For more information see http://www.nanovistech.com/

Other companies with 'nanogold' based cosmetic products include NanoPlasma Centre's Nanoseal range of face creams, see nanoplasmacenter.com and SongSing Nano Technology's skin creams http://www.ssnano.net/index.htm

From Gold.org

18-c gold pendants released to mark Mother's Day

A new line of 18-c gold pendants has been released by one Dubai jeweller in order to mark the upcoming celebration of Mother's Day.Damas, a leading international jewellery retailer in the Middle East, has created the specially-designed gold necklaces in order to symbolise the relationship between mother and child, the Peninsula reveals.

The circular 18-c yellow gold pendants are lined by a series of gold hearts, each of which cradle a small, white pearl, which Tamjid Abdullah, managing director of Damas says is indicative of a mother's love for her children.

Inscribed on the gold piece is the word Mum, which can be written in either Arabic or English and is outlined by a host of decoration that reflects "the infinite aspect of her love".

Mr Abdullah says that giving the gold pendant as a Mother's Day gift means "wishing her infinite love, good health and prosperity".It has been predicted that gold jewellery is set to be a key trend in the coming months - The Knot magazine recently stated that gold will be the "new metal" for engagement and wedding rings

Building an investment position in gold bullion 'a smart goal'

Building a strong investment position in gold bullion is a "smart goal", according to one finance expert.

Jeff Clark, editor of Casey's Gold and Resource Report in Casey's Daily Dispatch, suggests that making an investment in the precious metal can help people to protect their assets against rising inflation and "eventual dollar debasement".

"Not owning enough gold is equivalent to holding a million-dollar mortgage and having a $10,000 life insurance policy. It won't help much when you really need it," he says.

Mr Clark advises that if investors are worried about the position of the dollar or rising inflation then it might be wise to put their money into gold coins, adding that the more gloomy a person's outlook on the state of the global economy, the more they should invest in the precious metal.

Speaking to Bloomberg, Wallace Ng, executive director of derivatives at Fortis Nederland, recently suggested that gold acts as security against periods of financial turmoil.

Investing in gold 'can protect people from market forces'

Making an investment in gold can help to protect people from market forces, the Ombudsman for Financial Service Providers (Fais) has advised.
--
The recommendation was given in the hope of protecting consumers against "being exploited by market forces motivated by nothing more than greed and irresponsibility", Times Live reports.
--
Gold has been suggested as a worthwhile option for investors to protect their wealth - the Fais stated that the precious metal has proven over the years to be one of the most stable investment products on the market with an established growth record.
--
"For large sums of money, investing in gold has great growth potential and almost no risk," it commented.
--
Howard Ruff, writing for the Ruff Times, recently advised that investing in the yellow metal can prove to be the "perfect" hedge against inflation.
--
Mr Ruff recommended that investors might be wise to put their money into physical gold, such as bullion and coins, which are seen as a "solid" asset