LiveWire Economics Blog
LiveWire Economics Blog - December 3, 2009 14:53
THE PRICE OF WHOLESALE gold hit yet another record high against all major currencies bar the Aussie Dollar and Japanese Yen on Thursday, peaking above US$1226 an ounce at lunchtime in Hong Kong.
In two days, sentiments on the economy have improved dramatically thanks to a pair of economic reports. Tuesday (November 24), the gross domestic product was said to have risen by 2.8 per cent from the second to the third quarter.
As the dollar remains weak across the board thanks to renewed concerns about the strength of economy recover, the dollar-yen ratio currently sits just above major long-term support in the 87-88 yen range.
While oil and several major currencies have been major beneficiaries of the weak dollar, gold has really shined in light of the less desired greenback. One ounce of gold currently fetches $1,104.52, according to goldmoney.com.
Based largely on dollar weakness and rising oil prices, the Euro is currently worth $1.5018, after reaching a new 52-week high at $1.5051. The same dollar weakness has pushed the Pound back near $1.67, kept oil near or above the $80 per barrel level, and has sent the spot rate of gold soaring past $1,100 […]
Friday (November 6), the Labor Department is expected to release date on October unemployment. Forecasts call for 175,000 job cuts during the month, according to a poll of analysts by Reuters.
With unemployment still at historic highs and the state of the economy still fragile, most top economists expect Federal Reserve Chairman Ben Bernanke to announce Wednesday (November 4) afternoon that the Central Bank is keep its key interest rate at its current low point.
Despite the fact that mortgage applications are falling because of uncertainty about the ongoing potential for first-time home buyer credits, home sales are expected to have risen by 2.6 per cent during September when the report is issued later Wednesday (October 28) morning. This is according to a consensus from Thomson Reuters analysts.