Gold likely to soar on supply shortfall The price of gold, which breached $1,000 per ounce mark for the first time last month, is poised to remain high for the rest of the year as the yellow metal continues to face supply constraints and increased investment demand, analysts said. The prime factors that will continue drive gold prices is the supply and demand fundamentals and oil price-driven inflation. "With no significant increase in mine supply, and a perceptible shortfall in gold selling by central banks combined with no growth in scrap gold supply, demand will continue to outstrip supply despite soaring prices," analysts said. James Burton, Chief Executive Officer, World Gold Council (WGC), told Khaleej Times that world gold supply growth, which is expected to be almost flat, cannot cope with the rapidly increasing investment demand.
Chinese gold-miner swoops on Canada Jinshan Gold Mines, in which Chinese State-owned gold-miner China National Gold (CNG) has agreed to buy a 42% stake, will continue to be based in Canada, its new controlling shareholder said. Vancouver-based Ivanhoe Mines announced on Thursday that it had agreed to sell its 42% holding in TSX-listed Jinshan to CNG.China became the largest gold-producing country in the world last year, snatching the top spot from South Africa, which had held the accolade for more than a century. However, the world's top gold mining companies - the likes of Barrick Gold, AngloGold Ashanti and Newmont Mining - are all based in North America, South Africa or Australia.
The Face of a Prophet At the age of 77, Mr. Soros, one the world’s most successful investors and richest men, leapt out of retirement last summer to safeguard his fortune and legacy. Alarmed by the unfolding crisis in the financial markets, he once again began trading for his giant hedge fund — and won big while so many others lost.Mr. Soros has always been a controversial figure. But he is becoming more so with a new, dire forecast for the world economy. Last week he rushed out a book, his 10th, warning that the financial pain has only just begun. "I consider this the biggest financial crisis of my lifetime," Mr. Soros said during an interview Monday in his office overlooking Central Park. A "superbubble" that has been swelling for a quarter of a century is finally bursting, he said.
U.S. import prices rise 2.8% in March A surge in prices for imported petroleum pushed prices of goods imported into the U.S. higher by 2.8% in March, the most since November 2007, the Labor Department reported Friday. Imported petroleum prices jumped by 9.1% last month, marking the biggest such increase since rising 12.4% in November 2007. On a year-over-year basis, the price of imported petroleum has risen by a whopping 60%. The price of imported natural gas also surged, higher by 7.7% in March, after rising 9.9% in February. The overall increase was more than anticipated. Economists surveyed by MarketWatch had been on the lookout for March import prices rising by 2.2%.
Consumer sentiment plunges to 26-year-low Consumer confidence sunk to its lowest level in 26 years in early April, according to a report on Friday from University of Michigan/Reuters, as worries about the economy, unemployment and inflation deflated hopes for future. U.S. consumer sentiment index fell to 63.2 in early April from 69.5 in March. Sentiment is at its lowest level since March 1982. Economists surveyed by MarketWatch were looking for an April result of 68.8. The expectations index fell to 53.4 in April -- the lowest since November 1990 -- from 60.1 in March, noted Ian Shepherdson, chief U.S. economist at High Frequency Economics. There's no sign that confidence bottomed out yet, he said.
General Electric's quarterly net off 6%; outlook cut General Electric Co. pulled an unpleasant surprise on investors Friday, reporting a 6% drop in first-quarter net profit -- largely over trouble in its financial-services businesses -- and revising lower its 2008 outlook. It was the first material guidance cut in memory, said Oppenheimer analyst Christopher Glynn in a note, reflecting the difficult U.S. environment. GE said the inability to complete asset sales and higher mark-to-market losses accounted for a hit of fully 5 cents a share. "Demand for our global infrastructure business remained strong, but our financial-services businesses were challenged by a slowing U.S. economy and difficult capital markets," said Chairman and CEO Jeff Immelt in a statement.
Paulson to meet with Chinese central banker Zhou U.S. Treasury Secretary Henry Paulson will hold bilateral meetings with officials from Japan, France, Germany, China, Australia and Argentina over the next two days in connection with the meeting of the G7 leading industrial nations. On Friday morning, he will meet with Japanese Finance Minister Fukushiro Nukaga, Saudi Arabian Finance Minister Ibrahim Al-Assaf, Argentine Finance Minister Martin Lousteau and Australian Treasurer Wayne Swann. The G7, which is meeting Friday, will also host an outreach dinner with the heads of major banks on Friday to discuss the financial market turmoil, but Treasury hasn't disclosed the invitees yet.
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