Posted on 09/15/2009 12:09:15 PM PDT by RC one
NEW YORK (MarketWatch) -- Gold futures climbed back above the $1,000-an-ounce mark to finish at a new record on Tuesday, after upbeat U.S. economic reports and as Federal Reserve Chairman Ben Bernanke said the recession is likely over. The front-month September gold contract ended up $5.10, or 0.5%, at $1,005.0 an ounce on the Comex division of the New York Mercantile Exchange. This marks the highest settlement for a nearby gold contract. The more active December contract rose $5.20, or 0.5%, to finish at $1,006.30 an ounce. "Gold is continuing to knock on the $1,000-an-ounce door without making a concerted effort either way to test resistance or support," analysts at Goldcore said in a note.
(Excerpt) Read more at marketwatch.com ...
except the dollar is actually worth more judging by the most recent CPI data:
“The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.2 percent in July before seasonal adjustment, the Bureau of Labor statistics of the U.S. Department of Labor reported today. Over the last 12 months the index has fallen 2.1 percent, as a 28.1 percent decline in the energy index since its July 2008 peak has more than offset increases of 0.9 percent in the food index and 1.5 percent in the index for all items less food and energy”.
http://www.bls.gov/news.release/cpi.nr0.htm
I don’t know about that. Seems that a whole lotta air was squeezed out of the markets last year. I was out of the market and sitting in cash when things went south last year, and I got back in starting about January. I got some bargains on good, solid companies making money the old fashioned way... and they’ve come back nicely with fundamentals that still make sense. I’m up about 40% this year.
I think in about two years it will prove to have been a good idea to have already been in gold... but I’m not sure that this is the best time to get in. It may not be a bad time to get in, but I think it’s going back down before it goes up next year.
Excerpted from the article, "Companies will have a hard time passing higher expenses onto customers until evidence that the economy is starting to recover translates into sustained gains in consumer spending and business investment." That isn't good for the companies, and I think we'll see this along with lower prices in houses and cars for some time, which is why the dollar is worth more.
If a Republican is in the WH and the GOP controls Congress, then the economy stinks after 2 consecutive quarters of GDP growth.
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