GOLD REACHES ALL TIME HIGH RECORD.

Auckland Star, Volume LXIX, Issue 280, 26 November 1938, Page 9

GOLD REACHES ALL TIME HIGH RECORD.

OFFICIAL PRICE. Sterling Sags to Nearly Crisis Level. DISTURBING FEATURES. t-nited Press Association.—Copyright. (Received 11.30 a.m.) LOXDOX, Xovember 25. With the official gold price at £7 9/10J per ounce, a high record for all time, sterling' sagged to within 4 per cent the September crisis low level. Pressure on sterling persisted all the week, the source, of selling being partly Continental and partly domestic, banks reporting a moderate outflow of funds held on foreign account.

Above all, the international situation and the gloomy Budget prospects hang over sterling, relief of which appears less likely than ever. Many believe, despite official assurances to the contrary, that a secret arrangement involving a substantial downward adjustment of the sterling-dollar rate accompanied the trade treaty between Britain and America.

International uncertainties also dominated the stock markets. Selling was not heavy, but resistance to it weakened. War loan closed at £99, and old consols at £71 10/, a moderate loss after a gloomy week.

Colonials and foreign bonds mostly followed the trend of gilt-edged stock. Australians ended a little steadier than Xew Zealand issues.

The Xew York Stock Exchange turn over was 810,000 shares.

The Polo-German situation aggravated the international jumpiness, causing further withdrawal of capital to Xew York, in which French holders of London funds were active. Gold hoarding was also notable, £881,000 worth being bought to-day and £1,077.000 yesterday.

At the latest price gold shows a rise of 1/11 per ounce since the beginning of I this week. An unofficial record sterling price of £7 9/11 per ounce was established in 1935. As compared with the lowest price recorded this year, on January 3, the present figure represents an advance of 10. 5%. Converted into Xew Zealand currency this is about 13 1, which is 7d above the amount of 12 6 per ounce duty imposed on the export of gold from the Dominion.

High prices have been ruling during the past four months, having received an initial impetus from the development of the Czechoslovakian crisis, and been lifted higher recently in consequence of the unsettled conditions existing in Europe.

The cffect of the new trade treaty between Britain and America, which was signed on Xoveml>er 17, is obscured by other influences operating to force up the value of gold.