Manitoba Mining Information

Gold Sets New London High

In London trading Gold set an all time high above $929 USD per oz in Monday trading. The Bullion Vault is reporting that European stock markets ended the day lower as the scandal deepened at Societe Generale, this combined with sinking USA Home Sales has sparked a new rise in the price of Gold.

“We’re seeing new longs coming into the market,” one New York floor trader said to Dow Jones Newswires earlier, when discussing Monday’s expiry of the February Comex gold futures contact.

“As February options are expiring,” the newswire explains, “participants are trying to keep February gold futures contracts above $920 an ounce before they roll into April contracts.”

The Bullion Vault Gold News also reports that they are watching the Federal Reserve’s scheduled interest-rate decision on Wednesday – widely expected to bring a 0.25% or even 0.50% cut.

Wallace Ng, head of precious metals trading at Fortis Bank in Hong Kong, is quoted as saying earlier today, “Gold is boosted by the expectation that the Fed will have to pick and choose between fighting inflation or fighting recession,”

“Now it seems they have given up on inflation.”

With a new high close and continual worries in the financial markets, Gold appears to be off to a new price surge.