Crude oil price rises further in NY morning. Huge plunge in crude inventory and strong economic data in China continue to support price. Currently trading at 72.7, the benchmark contract will probably record weekly gain of more than +5%.
Gold price strengthens to 1010 in NY morning as driven by dollar's weakness. Seeing robust investment demand in ETFs, the ETF Securities launched a new fund, ETFS Physical Swiss Gold Shares, in the US Wednesday. The major selling point is that the fund custody all of the physical gold bullion in Switzerland.
Another news that boosted gold price was Barrick Gold's fund raising activity. The world's biggest gold producer announced to raise up to $3.5B through share offering in order to eliminate most of its remaining gold hedging contracts. The company believes the yellow metal's outlook is 'increasingly positive' and 'global monetary and fiscal reflation will be necessary for years to come, resulting in an increased risk of higher inflation and a future negative impact on the value of global currencies'. These factors are positive for gold.
Silver price jumps +2% after surging +1.2% yesterday. The benchmark contract has just breached 17 and reached the highest level since August 2008. Over the week, silver will probably gain +4%.Gold -to-silver ratio has narrowed to 59 from above 70 just 2 months ago, suggesting outperformance of silver in recent months.
Stock markets advance in both Asian and European sessions. In Asia, the MSCI Asia Pacific Index gained +0.4%. China's Shanghai Composite Index soared +2.2% while Hong Kong's Hang Seng Index rose +0.4%. However, Japan's Nikkei 225 Stock Average slid-0.7% to settle at 10443 as GDP growth was revised down to +0.6% qoq in 2Q09.
In Europe, benchmark indices are broadly higher. UK's FTSE 100 Index and Germany's DAX Index add +0.8% while France's CAC Index climb +1% to 3746.