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Gold Prices hits a record $1900 today. Where is Tanzania?

Discussion in 'Habari na Hoja mchanganyiko' started by Mdondoaji, Sep 6, 2011.

  1. M

    Mdondoaji JF-Expert Member

    Sep 6, 2011
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    GOLD prices topped $US1900 a troy ounce today as worries about slowing growth and European debt whetted appetite for the metal's perceived safe haven. Gold for December delivery rallied $US25.90 to $US1902.80 an ounce in electronic trading on Globex. The contract had risen as high as $US1908.40 an ounce, according to data from FactSet.
    Gold futures rose rapidly to touch a record $US1912.29/oz on August 23 before falling more than $US200 in the next 48 hours after US exchange operator CME Group hiked trading margins on gold futures.

    Demand for bullion gained as US stock-index futures and European equities fell.

    An election defeat for German Chancellor Angela Merkel's party prompted worries about whether support for helping Europe's debt-ridden would decline.

    Earlier in London, spot gold was hovering about the key $US1900 a troy ounce mark, and was expected to soon rise back toward record territory, as deepening concerns over global growth prompt investors to abandon risk assets in favor of perceived safe havens, like bullion and core government bonds.

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    The London afternoon spot gold fix was $US1895/oz.Friday's poor US payrolls report has been key in boosting investor allocation to gold, as it reignited speculation of additional easing measures that could further undermine the US dollar, said Morgan Stanley analyst Hussein Allidina. The report showed the world's largest economy failed to add jobs for the first time in almost a year.

    Europe, however, is likely to be a key focus for the financial markets this week, as policymakers start the process of ratifying changes to the euro-zone's bailout fund -- the European Financial Stability Facility. The German constitutional court will also rule on the legality of the rescue package for Greece.

    "Comments from officials in the weeks ahead are bound to play a key role in market sentiment, and the German court ruling on Wednesday will assist market nervousness," said UBS analyst Edel Tully.

    "Investors will likely have a lot more conviction this week than the last, when directional client flow was largely absent," she added.

    Further adding to market jitters is a closely watched survey of business activity, which showed euro-zone economic growth slowed to a two-year low in August.

    Markit Economics' Purchasing Managers' Index for the region -- a gauge of manufacturing and services activity -- fell to 50.7 in August from 51.1 in July, meaning the euro-zone economy posted only marginal growth last month. A reading above the neutral 50 threshold indicates an expansion in business activity.

    Ms Tully said European economic woes are again reclaiming the spotlight in world markets.

    "Should negative headlines once again flood the wires, the fear trade, seen through demand for small bars and coins, is likely to accelerate," she said.

    Liquidity may prove an issue, though, and result in some choppy trading conditions in the latest session, as US markets were closed for the Labour Day holiday.

    Nevertheless market participants say a break to new record highs is only a matter of time given the current turbulence across world financial markets. Gold is widely viewed as an alternative store of value and safe haven amid times of economic uncertainty.

    "Perceived safe-haven assets, like gold, should continue to benefit from uncertainty on both sides of the Atlantic, in our view," Mr Allidina said.

    The only real negative in the market in the latest session, market participants say, is an announcement by the Shanghai Gold Exchange that it will raise margins as well as upper and lower trading limits for gold and silver contracts, effective on Friday.

    The margin for gold will be raised to 13 per cent from 12 per cent, while the margin for silver will be raised to 16 per cent from 15 per cent.

    The margins and limits will, though, be restored to current levels, if they aren't breached, when traders return to the markets after the Mid-Autumn Festival long weekend, the exchange said.

    Source: Wall Street Journal.

    My view: Where is Tanzania? We are the third gold producer in Africa and we are not benefiting from this rare opportunity of volatility in commodity market.
  2. n

    niweze JF-Expert Member

    Sep 6, 2011
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    Let's go by facts only. We know kikwete and his gov want to dispute the following.

    Let gov dispute why Tanzanians don't have electricity, health services, education and so forth.....
  3. Kichuguu

    Kichuguu Platinum Member

    Sep 6, 2011
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    Tanzania is waiting for MWEKEZAJI
  4. Kibanga Ampiga Mkoloni

    Kibanga Ampiga Mkoloni JF-Expert Member

    Sep 6, 2011
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    Wa kukusanya kodi?
  5. n

    ngwendu JF-Expert Member

    Sep 6, 2011
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    nchi pekee duniani yenye wajinga kila kona kuanzia viongozi mpaka wanaoongozwa. labda sifa ya ziada kwa viongozi ni ufisadi na wanaoongozwa ni mambumbumbu.
  6. MANI

    MANI Platinum Member

    Sep 6, 2011
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    Ngwendu siku si nyingi mambumbu wataamka !