Gold Price Reaches New Heights: NZ Mint Comments

Gold Price Reaches New Heights: NZ Mint Comments

The gold price hit USD 1,435.75 an ounce today, with the price looking set to rise in both USD and NZD terms.

NZ Mint head bullion trader Mike O’Kane says the price is influenced by both domestic and international factors.

“John Key announced yesterday he would like to see the OCR (Official Cash Rate) reduced 50 basis points in light of the Christchurch earthquake. This has put some real pressure on the NZD resulting in the price of gold rising in NZD terms.”

Continued unrest in the Middle East and the prospect of potential NATO military action in North Africa has also pushed the gold price to historic levels.

“Gaddafi has said West intervention would lead to a bloodbath and as a result we are seeing more of the proverbial ‘flight to safety’ as demand for gold increases amid the global political instability,” says O’Kane.

“Locally, we are seeing an increase in both buying and selling (50/50 split). For every buyer who thinks prices will continue to rise, we have a seller content to take profit”

Mike O’Kane says investors are eagerly awaiting the Reserve Bank of NZ announcement next Thursday, which has the potential to have a significant effect on the NZD and the gold price in NZD terms.

ENDS

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