Reply #54: Meanwhile gold gets smacked - Gold futures' retreat capped by dollar [View All]

[54anickel]

World Gold Council reports record demand during 2006

http://www.marketwatch.com/news/story/gold-futures-retreat-dollars-weakness/story.aspx?guid=%7BB0BC8D8F%2D28AA%2D4768%2D90F6%2D060B1C8A72DF%7D&dist=moreover

SAN FRANCISCO (MarketWatch) -- Gold futures edged lower Thursday morning, but declines were limited as the dollar continued to weaken after a mixed batch of U.S. economic data.

The benchmark gold contract added more than $3 an ounce gain in Wednesday's session.

"This hesitation in gold has taken place despite a series of seemingly auspicious news for the precious metal," said Jon Nadler, an investment-products analyst at bullion dealers Kitco.com.

"The sharply lower industrial production and capacity utilization numbers point to contraction in the economy and the more worrisome news of net capital outflows amid a steep decline in fresh inflows has to have dollar bulls on the run once more," he said, in e-mailed commentary.

"Perhaps the news offset each other, as lower economic growth might dampen metals demand, while a declining currency would certainly stimulate it," Nadler said.

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Industrial demand was the highest ever at 458 tons, and investment demand was 7% higher than in 2005 in tonnage terms and 45% higher in dollar terms, said the World Gold Council, an advocacy organization funded by the world's leading gold miners. (There's that worth less buck again)

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