Posted on 10/06/2009 1:10:23 PM PDT by RC one
LONDON (Reuters) - Gold surged to a record high above $1,040 per ounce on Tuesday, with buying fueled by dollar weakness after a report, later denied, that Gulf Arab states were considering abandoning the U.S. currency for oil trade.
Both spot gold prices and U.S. gold futures have benefited from a convergence of factors including the dollar's decline, technical buying momentum and worries about potential inflation as central banks struggle to emerge from unprecedented fiscal stimulus measures.
"In an environment where interest rates are virtually zero, the incremental cost of moving into gold is nil. It stands to reason for investors that gold is more desirable," said Jack Ablin, chief investment officer at Harris private bank in Chicago.
Spot gold hit a historic $1,043.45 per ounce and was last up 2.2 percent at $1,039.55, compared with $1,016.65 quoted late in New York on Monday.
U.S. gold futures hit a record high, while the metal also hit six-month highs when priced in sterling and euros, breaking above 700 euros an ounce for the first time since early April.
For a graphic on gold's price in dollars and euros, click on:
http://graphics.thomsonreuters.com/109/GLD_PRCEUR1009.gif
A positive technical picture for gold fueled buying on the fund side, traders said. However, the weight of near-record long positions in New York gold futures still leaves the market vulnerable to a correction.
The dollar slipped sharply after UK newspaper the Independent said Gulf Arab states were in secret discussions to end the use of dollars in oil trading.
(Excerpt) Read more at news.fidelity.com ...
It seems to me it was only good advice if you sell and realize the profits. If you're still holding it when the price falls, then what good was the advice?
Gold is never going to fall, it will be at 3,000 per OZ in 6 months, and without it you will starve ... The US dollar is going to collapse, very soon.
How do you cook it?
This seems pretty funny to me.
With some fava beans and a nice chianti.
Trust me, there will be an economy, there will be those that trade in gold, you think people are only going to trade food? LOL, nope, gold my friend, the economy is going to collapse, people can grow food, gold is the coin ...
According to Robert Zoellick, World Bank President and former Goldman Sachs head and U.S. Secretary of State, you shouldn’t take the U.S. dollar’s reserve currency status for granted. Swelling government deficits and the strength of emerging countries is weakening the demand for the dollar. Time to head for the exits?
But in this current environment, will it fall? I've posted this elsewhere, but listen to the response an Icelander made after being bashed by some Brits. I believe this is what is store for a lot of middle class Americans, especially if they don't own gold or silver:
It was a really bad call for sure for the Icelandic Government to change the laws but without it Icelandic Economy would be far worse off than it is now. Do you know how bad it is? If drastic things don´t happen during the next year most likely 50% of all homes in Iceland will go bankrupt!
Yes, I´m from Iceland. I´ll give you an example how a middleclass home looks like right now by giving you a peek into mine. I´ve lost ALL my savings, 35% of my pension lost, one unemployed in the family and the other got it´s wages cut cause companies just can´t cope, My loans have doubled in montly payments, Buying power of my salary has gone down 50%, The millions of ISK I owned in my house has gone to negative equity, I eat 14 meals of porridge every week :)
You just try to work on those numbers with what you got and try to calculate how you are gonna cope!! The government had to allow us to take out some of our pension funds and people are using it just to cope. And on top of that you are asking us the Icelandic Nation to pay for the debts of a privately owned bank!! I didn´t own that bank and surely did nothing to deserve paying their debt.
Cause I voted for st..id people and finance regulations in Europe are greatly flawed should I pay for it more than you... or the 12.000 people in England? If you are from England you probably didn´t vote for the brightest of the bunch either but why arent you expected to pay? You probably don´t care so please go on kicking me down.
I´m relentless and will not give up but it would make it easier to me and this small nation if you could show some understanding and back off a little! Look before you leap.
GOLD IS KING, GOLD WILL BE 3,000 PER OZ IN 6 MONTHS ...
What say you?
What are people going to trade their gold for? Goods and services, right? Then I guess I’ll get my gold after all, when the dollar collapses.
Buy low, sell high.
Oh, I will.
oh, its nice to think you own a chunk of gold...I own a tiny, tiny amt...and silver....but if all the world goes to hell in a handbasket, I'd rather have an extra hammer and some canning jars, for example...
Do you still think that for every dollar the government borrows the Federal Reserve has to print a dollar to buy the bond?
No, but your mom does.
I'm so proud.
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