Analysts see gold hitting US$1,200 in three months

By LAALITHA HUNT

laalhunt@thestar.com.my

PETALING JAYA: US gold futures, which surged to a record US$1,001.50 on Thursday, is likely to breach US$1,200 an ounce within the next three months.

MIMB Investment Bank Bhd technical analysis manager Lee Cheng Hooi said gold could hit new highs this year on expectations of further Federal Reserve rate cuts and inflationary concerns.

“Based on monthly trends, gold prices are seen to be strong as investors see gold as a real and tangible asset and safe value haven amid economic uncertainties,” he added.

Aseambankers chief economist Suhaimi Ilias said gold was used as a hedge against the weakening dollar and inflationary pressures.

“History also proves that traditionally, gold is favoured during inflationary periods,” he said, adding that gold would continue its upward trend due to the volatility in the dollar.

TA Securities head of research Kaladher Govindan concurred that gold price, which was also driven by soaring crude oil prices that had scaled to a record US$111 a barrel, would continue to rise due to the weak US economy.

According to an AFP report, Asian economic giants China and India have also boosted demand for the precious metal, which is used in jewellery, dentistry and electronics.

“Gold, which is priced in dollars, becomes cheaper for buyers using other currencies when the US unit falls in value. The dollar slumped on Thursday against both the euro and yen as fresh credit jitters swept across global markets,” the report said.

The report added that gold price had risen by about 17% so far this year, spurred also by supply problems in the world's largest producer, South Africa.

“Stoppages by miners protesting unsafe working conditions and ongoing power cuts in South Africa have hampered supplies,” it said.

On the local front, Datuk Andrew Kam Tai Yeow, chairman and chief executive of London-listed Malaysian gold miner Peninsular Gold Ltd, said the overwhelming global demand for gold bode well for the local gold mining industry.

The company has invested RM60mil in the East Coast Economic Region to build a plant in Raub, Pahang. The plant, expected to start production soon, will be able to extract 85% of the gold residue left in mine tailings.

“We would consider increasing our investment as we see a lot of potential, going forward,” he said.

However, trading in local jewellers such as Poh Kong Holdings Bhd and DeGem Bhd was thin despite the recent spike in gold price.

An analyst attributed this to the local political situation and global volatility.

The upward trend in gold price would not necessarily translate into higher share prices for gold jewellers; instead investors preferred to invest in the commodity itself, the analyst added.

The Star,

Saturday March 15, 2008

Sarawak’s corporation on anti-corruption drive

KUCHING: The Sarawak Economic Development Corporation (SEDC) has signed a memorandum of collaboration with Transparency International Malaysia (TI-M) to promote integrity and combat corruption.

Under the memorandum, SEDC will put in place structures to eliminate corruption by advocating accountability, transparency and integrity in its business dealings and transactions.

The memorandum also seeks to create a culture of intolerance towards corruption and promote a culture of integrity through programmes such as TI-M’s integrity pact, a tool aimed at preventing corruption in public contracting, and a code of ethics.

SEDC will also renew its commitment to transparency, accountability and good governance in its daily operations and ensure that elements of corruption in its business dealings or operations will be addressed seriously.

The memorandum was signed by SEDC chairman Datuk Talib Zulpilip and TI-M treasurer Richard Wong.

Talib said the signing of the memorandum was part of SEDC’s efforts to promote integrity and accountability within the organisation.

He said SEDC had established a practice requiring all parties participating in its tendering process to sign an agreement that they would not influence or bribe anyone in the organisation.

“The memorandum with Transparency International is a good opportunity to reinforce what we are doing,” he said.

The Star

Saturday March 15, 2008

Obama renounces fiery pastor's comments

By Andrew Stern

CHICAGO (Reuters) - U.S. presidential candidate Barack Obama on Friday repudiated what he called "inflammatory and appalling remarks" made by his Chicago pastor, seeking to quell another campaign controversy tinged with race.

Democratic presidential hopeful Senator Barack Obama (D-IL) delivers a speech at the Chicago History Museum in Chicago, Illinois, March 12, 2008. (REUTERS/Frank Polich)

The Democrat from Illinois, who would be the first black president, used stronger words than he has in the past to distance himself from widely circulated sermons by his pastor, Rev. Jeremiah Wright of Trinity United Church of Christ on Chicago's South Side.

In Wright's sermons over the years, which have been circulated in the media and on the YouTube Web site, he has called the Sept. 2001 attacks retribution for U.S. foreign policy, cited the U.S. government as the source of the AIDS virus, and railed against a racist America.

"I vehemently disagree and strongly condemn the statements that have been the subject of this controversy," Obama said in statement, responding to persistent media coverage of Wright's sermons.

"I categorically denounce any statement that disparages our great country ... I also believe that words that degrade individuals have no place in our public dialogue, whether it's on the campaign stump or in the pulpit," he said.

Obama, who is locked a close race with New York Sen. Hillary Clinton for the Democratic presidential nomination, said he had not been present during the sermons in question. Obama joined Wright's church 20 years ago, before starting his political career.

"Had I heard them in church I would have expressed that concern directly to Rev. Wright," Obama told MSNBC, adding that Wright was no longer on the campaign's spiritual advisory council, the African American Leadership Committee.

At the time he learned of the sermons, he said did not leave the church where he was married and his daughters were baptized because Wright was retiring.

DISTANCING

Previously, Obama has sought to distance himself from Wright's comments by chiding him as "an uncle you don't always agree with." But Friday's repudiation was reminiscent of one he made after Nation of Islam leader Louis Farrakhan, known for making anti-Semitic and racist comments, declared his support.

Earlier this week, 1984 vice presidential candidate Geraldine Ferraro resigned from Clinton's campaign after saying that Obama's success was due to his race. Obama refused to condemn those comments as racist because he said they were not meant that way.

In a sermon late last year, Wright, who is black, talked about why he believed voters would support Clinton over Obama.

"Barack knows what it means to be a black man living in a country and a culture that is controlled by rich white people," Wright said. "Hillary! Hillary can never know that. Hillary has never been called a nigger."

Several commentators, including one in the Wall Street Journal, said Wright's sermons were alarming as they come from the man Obama has referred to as his spiritual confidant and the source of one his books' titles, "The Audacity of Hope."

But others said it was unlikely to be a serious problem for Obama's campaign ahead of the next state nominating contest against Clinton in Pennsylvania on April 22.

"There may well be Clinton and (presumed Republican nominee John) McCain supporters who'll try to push the issue but I don't think it will settle in because too many Americans are churchgoers of one sort or another and have heard their pastor say something about 'hellfire' or whatever, and they don't agree with it," said political analyst Dick Simpson of the University of Illinois at Chicago.

Obama praised Wright, a former U.S. Marine, as a "respected biblical scholar" who has "preached the gospel of Jesus, a gospel on which I base my life. In other words, he has never been my political advisor; he's been my pastor."

Copyright © 2005 Reuters

Chinese Import & Export Commodities Exhibition (Malaysia) 2008

Date: 18-21 December 2008
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The 8th Vietnam Int'I Textile & Garment Industry Exhibition

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Exhibit Profiles: Chemical Fiber Machinery, Preparatory Machinery, Weaving Machinery, Knitting Machinery, Dyeing and Bleaching Machinery, CAD/CAM and Testing Machinery, Auxiliary Equipment, Parts & Accessories etc.

The 5th China-ASEAN Expo

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The 8th Vietnam Int'I Plastic Printing & Paper, Foodtech & Pack Industry Exhibition 2008

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