Posted on 03/16/2006 3:35:31 PM PST by Proud_USA_Republican
Gold closed higher on Thursday despite a CPI report and other data that convinced many inflation is not a problem and the Federal Reserve will stop raising interest rates sooner than later.
But gold, which serves as a hedge against inflation, still found cause to rally. First, the dollar took a hit after the CPI. The Fed's 20-month-long campaign to raise rates has provided key support to the greenback. Gold, which is priced in dollars, normally rises when the dollar drops, as it takes less money to buy the same amount of the precious metal.
Second, crude oil prices, which gold has been tracking recently, jumped $1.41, or 2.3%, to $63.58 per barrel after the U.S. launched its biggest air attack in Iraq in three years.
The result: Gold for April delivery gained $1 to $555.40 per ounce, marking its fourth straight session of upside for a total gain of $14.10.
(Excerpt) Read more at thestreet.com ...
Do you have a link directly to this?
yes and no.
Gold has had a big run the past year, but it wasn't because the dollar was tanking hard in the opposite direction.
Gold and the dollar are less pegged to each other than it used to be.
Fascinating bit you've posted. However, that line about the slowdown being due (possibly) to the Chinese New Year, threw me a bit. However, a 21% increase in outbound containers is fairly significant.
I was suggesting (and I still insist) that the writer had made a slip of pen or keystroke; and it's obviously the case, even in consideration of what you say. Your statements are valid, but do not invalidate mine in any way. Point blank: if gold's price rises, it takes more dollars to buy it -- no ifs ands or buts. The only possible exception would be if you were doing an apples and oranges thing in which someone said "gold is rising against the peso" (for example), because the peso has radically fallen, even more so, against the dollar, while gold was simultaneously falling vs. the dollar. Now that's confusing, but it is the only way you could say gold has risen in value (albeit against someone else's currency), yet it doesn't take more dollars to buy it.
I agree. I do think the writer made a mistake in the language, but I know what he was trying to get at.
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