Barclays says current gold prices "not justifiable"

New York (Platts)--18Apr2006


Gold prices appear to have firmly entrenched themselves above the $600/oz
level, with Tuesday's rally on COMEX advancing the nearby June contract to
a settlement price of $623.30/oz. But this level is not justifiable by the
metal's fundamentals, according to Barclays Capital, which had pegged
technical resistance at $621/oz before gold soared above that level.

"While we think such high prices are not justifiable by gold's commodity
fundamentals in terms of market balance and inventory levels, the combination
of a surge in oil prices above $70/barrel, geopolitical tensions and strong
momentum is dominating at present, and further gains cannot be ruled out,"
said Barclays in its Commodity Daily Briefing.

For more information, take a trial to Platts Metals Week at
http://plattsmetals.platts.com.


 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.