"Narrative Summit" Releases 2025 Recommendations to Cement Egypt's Position as a Global Tourism Destination    Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Gold jumps after preliminary EU deal on Iran oil ban
Published in Daily News Egypt on 04 - 01 - 2012

LONDON: Gold was set for its strongest two-day rally in 2-1/2 months on Wednesday after an agreement in principle among European leaders to ban Iranian oil imports boosted the crude price and catapulted bullion to two-week highs.
European Union governments reached a preliminary agreement to ban imports of Iranian crude but have yet to decide when such an embargo would be put in place, EU diplomats said on Wednesday.
Brent crude futures rose by more than $1 a barrel above $113 in response to the news, prompting a sharp bounce in the gold price, which can often rise in response to geopolitical uncertainty.
Spot gold was last up 0.4 percent on the day at $1,607.89 an ounce by 1527 GMT, having risen by as much as 0.7 percent to a session high of $1,614.10, while most-active COMEX February gold futures were up 0.6 percent at $1,609.30.
"The market is tense. It is the beginning of the year, there isn't any major positioning as such in the market and everyone is trying to figure out, heads or tails, whether or not to go in and any sort of news like that triggers buying," said Afshin Nabavi, head of trading at MKS Finance.
"People are itching to buy but don't know whether to buy here ... we have non-farm payrolls coming out on Friday, so ahead of that, a lot of people are going to be cautious," he said.
The decline in the gold price towards the end of 2011 appears to have lured some buyers out of the woodwork following a fairly lackluster previous few weeks, due in large part to the weakness in the Indian rupee against the dollar, which suppressed demand in the world's largest consumer of gold.
Friday's monthly non-farm payrolls report is expected to show 150,000 jobs were added in December, following November's 120,000 increase.
Chinese demand
The Shanghai Gold Exchange registered record-high trading volumes on Wednesday, and local dealers in Singapore said they expected demand to pick up next week ahead of the Chinese New Year.
"Our physical sales to India yesterday were about double average levels," wrote UBS analyst Edel Tully. "The key factor in this market right now is not purely the gold price, but stabilization in the rupee. China returned to the market today, and based on turnover on the SGE they're liking gold."
The dollar hit one-week highs against the Swiss franc and session highs against the euro, while Treasury prices fell to intraday lows.
The Federal Reserve's decision on Tuesday to publish the longer-term forecasts of its policymakers could push back expectations of when U.S. benchmark rates will rise, creating a potential future boost for gold.
Gold tends to benefit from an environment of low interest rates because the opportunity cost of holding it - the premium investors forfeit by not holding yield or dividend-bearing stocks or bonds - declines.
In the Middle East, tension has increased between Iran and the West over the country's nuclear program, which Washington and its allies say is a cover to build bombs.
Iran has been hit by foreign sanctions, including four rounds of UN sanctions over its refusal to halt its sensitive nuclear work as demanded by the UN Security Council.
Iran threatened this week to choke off crude shipments through the strategic Strait of Hormuz in retaliation against tougher sanctions from the West over its nuclear program.
"With 40 percent of the world's internationally traded oil moving through the Strait of Hormuz, even a low probability of the strait's closure - Iran threatened to do this last month if it were subject to further sanctions - can have a material impact on oil and hence on gold prices," James Steel, analyst at HSBC, said.
Silver fell by 1.2 percent on the day to $29.29 an ounce, pushing the number of ounces of the metal needed to buy an ounce of gold up for the first time since Friday.
The gold/silver ratio is now at 54.91, having fallen from last December's 14-month high of 57.4, when gold's outperformance against silver reached its strongest since October 2010.
Platinum was last down 0.1 percent at $1,422.99 an ounce, while palladium eased 0.8 percent to $653.97 an ounce.
Over the last month, palladium has easily outperformed the other three major precious metals, having risen by nearly 2.5 percent, compared with price losses in gold, silver and platinum in this time.


Clic here to read the story from its source.