Gold prices fell on the expectation that a US-led war on Iraq may be delayed after the UN said it needs more time to determine whether Iraqi leader Saddam Hussein is developing weapons of mass destruction.
Gold for immediate delivery fell as much as US$10.30 an ounce, or 2.9 percent, to a seven-week low of US$341.25. It traded at US$346.35 at 3:39pm Tokyo time, extending to 11 percent its decline from a six-year high of US$389.05 reached on Feb. 6.
Hans Blix, the UN's chief weapons inspector, said last week Iraq has increased its cooperation. France and Germany may put pressure on Britain at a European Union Summit today to give Blix's team more time and temper support for a US-led strike, following demonstrations in London by more than 750,000 antiwar protesters at the weekend.
"The war premium is coming out of gold," said Martin Mayne, a gold trader at NM Rothschild & Sons (Australia) Ltd in Sydney. "With the Blix report, some people may think there's a chance the weapons inspectors will be given more time."
That will delay a war or put it off indefinitely, he said.
The UN Security Council met Friday to hear reports from Blix and Mohamed ElBaradei, head of the International Atomic Energy Agency. They told the Security Council that they have found no weapons of mass destruction and that Iraq needed to cooperate more.
Gold for December delivery, the most active contract on the Tokyo Commodity Exchange, fell as much as Japanese Yen 60 -- the limit allowed by the exchange -- or 4.4 percent, to Japanese Yen 1,319 a gram. It traded at 1,329 yen a gram at 2:34pm.
"Gold has been trading on the back of the (war) uncertainty for so long," said Paul Lee, director of precious metals at Dresdner Kleinwort Wasserstein in Sydney. The 4.9 percent drop in spot gold prices last week "doesn't give people a lot of confidence to go out and buy gold."
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
CELEBRATION: The PRC turned 75 on Oct. 1, but the Republic of China is older. The PRC could never be the homeland of the people of the ROC, Lai said The People’s Republic of China (PRC) could not be the “motherland” of the people of the Republic of China (ROC), President William Lai (賴清德) said yesterday. Lai made the remarks in a speech at a Double Ten National Day gala in Taipei, which is part of National Day celebrations that are to culminate in a fireworks display in Yunlin County on Thursday night next week. Lai wished the country a happy birthday and called on attendees to enjoy the performances and activities while keeping in mind that the ROC is a sovereign and independent nation. He appealed for everyone to always love their
‘EXTREME PRESSURE’: Beijing’s goal is to ‘force Taiwan to make mistakes,’ Admiral Tang Hua said, adding that mishaps could serve as ‘excuses’ for launching a blockade China’s authoritarian expansionism threatens not only Taiwan, but the rules-based international order, the navy said yesterday, after its top commander said in an interview that the Chinese People’s Liberation Army (PLA) could blockade the nation at will. The object of Beijing’s expansionist activities is not limited to Taiwan and its use of pressure is not confined to specific political groups or people, the navy said in a statement. China utilizes a mixture of cognitive warfare and “gray zone” military activities to pressure Taiwan, the navy said, adding that PLA sea and air forces are compressing the nation’s defensive depth. The navy continues to
RSS