GoldenTiger
03-23-2003, 01:28 AM
India reports active trade in gold on war jitters
Reuters
March 22 2003 at 07:45AM
Bombay - Traders in India, the world's largest buyers of gold, resumed purchases yesterday as global prices hovered in a narrow range after the start of US strikes against Iraq.
They said importers were active on fears prices would jump if the war was prolonged or if terror attacks struck other parts of the globe.
"It is good to buy now as prices are lower than two weeks ago," a dealer said.
But some traders expected prices to fall, as was the case during the 1991 Gulf war.
India imports an average 1.5 tons of gold each day to meet its annual domestic demand of more than 800 tons.
Spot gold was quoted at $334.75/335.50 an ounce, up from $332/333 in mid-morning Asian trade after explosions rocked Baghdad and US President George W Bush said the early stages of an attack on Iraq had begun.
Gold was trading at about $356 two weeks ago and last month touched a six-and-a-half-year high of $388.50.
Gold has a history of price volatility in times of war. It gained $45 to $415 when Iraqi forces invaded Kuwait in August 1990, then fell $40 to $336 when allied forces began action to evict Iraq from the Gulf emirate in January 1991.
"The current prices are not sustainable and should fall to about $325 an ounce in the next few days," said Nayan Pansare, an official at trading firm Inter Gold.
"But if it turns out to be a long war with the use of chemical and biological weapons, prices may shoot up."
Bush said yesterday the war could be longer and more difficult than expected. - Reuters
http://www.businessreport.co.za/html/busrep/br_frame_decider.php?click_id=335&art_id=ct20030320170649708I53243892&set_id=60
Reuters
March 22 2003 at 07:45AM
Bombay - Traders in India, the world's largest buyers of gold, resumed purchases yesterday as global prices hovered in a narrow range after the start of US strikes against Iraq.
They said importers were active on fears prices would jump if the war was prolonged or if terror attacks struck other parts of the globe.
"It is good to buy now as prices are lower than two weeks ago," a dealer said.
But some traders expected prices to fall, as was the case during the 1991 Gulf war.
India imports an average 1.5 tons of gold each day to meet its annual domestic demand of more than 800 tons.
Spot gold was quoted at $334.75/335.50 an ounce, up from $332/333 in mid-morning Asian trade after explosions rocked Baghdad and US President George W Bush said the early stages of an attack on Iraq had begun.
Gold was trading at about $356 two weeks ago and last month touched a six-and-a-half-year high of $388.50.
Gold has a history of price volatility in times of war. It gained $45 to $415 when Iraqi forces invaded Kuwait in August 1990, then fell $40 to $336 when allied forces began action to evict Iraq from the Gulf emirate in January 1991.
"The current prices are not sustainable and should fall to about $325 an ounce in the next few days," said Nayan Pansare, an official at trading firm Inter Gold.
"But if it turns out to be a long war with the use of chemical and biological weapons, prices may shoot up."
Bush said yesterday the war could be longer and more difficult than expected. - Reuters
http://www.businessreport.co.za/html/busrep/br_frame_decider.php?click_id=335&art_id=ct20030320170649708I53243892&set_id=60