Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Flight to gold sees financial markets struggle

Flight to gold sees financial markets struggle
By NZ Mint head bullion trader Mike O’Kane

Turmoil is good for the price of gold and again financial markets are struggling against a tide of opinion that the Euro bailout package may not succeed.

At USD$1,233 overnight, gold hit its highest price ever and some analysts are predicting USD$1,250 by the weekend. The previous record price of USD$1,227 was when the NZD / USD was around 0.54.

So for Kiwi gold buyers, the relatively high NZD$ rate is helping to offset these record gold prices making it cheaper to buy here than in most countries. As an aside, gold has also hit record highs in Yen, Euro, USD$ and GBP.

Overall financial markets globally are struggling as investors move to safe haven investments. This can be seen by the fall in US government bond yields, and the surge in the gold price.

Sovereign risk concerns are still at the forefront of most markets’ concerns, especially in Europe, so instead of moving to the normal safety of government issued bonds or the Euro, investors are moving to gold.

Volatility in the gold price is expected as we break through to new levels, but given the bullish attitude towards gold as a long term investment, the overall trend is expected to be up.


© Scoop Media

Business Headlines | Sci-Tech Headlines


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>

Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>

Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>

Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>

Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>