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Dollar Up, Gold Down in Europe
Yahoo! Finance ^

Posted on 10/04/2006 9:05:10 AM PDT by Toddsterpatriot

LONDON (AP) -- The U.S. dollar was higher against other major currencies in European trading late Wednesday. Gold fell. The euro traded at $1.2688, down from $1.2727 late Tuesday in New York. Later, in midday trading in New York, the euro fetched $1.2688.

Other dollar rates in Europe, compared with late Tuesday, included 118.03 Japanese yen, up from 117.89; 1.2512 Swiss francs, up from 1.2451; 1.1274 Canadian dollars, up from 1.1206.

The British pound traded at $1.8844, down from $1.8872.

In midday New York trading, the dollar bought 118.02 yen and 1.2512 Swiss francs, while the pound was worth $1.8835.

Gold traded in London at $561.60, down from $581.80 late Monday.

In Zurich, gold traded at $568.25, down from $582.05.

Gold fell $16.30 in Hong Kong to $576.60.

Silver opened in London at $10.50, down from $11.00.


TOPICS: Business/Economy
KEYWORDS: gold; goldbuggery; ouch
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$1650, here we come!
1 posted on 10/04/2006 9:05:12 AM PDT by Toddsterpatriot
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To: Mase; nopardons; Fan of Fiat; BeHoldAPaleHorse
Ouch!
2 posted on 10/04/2006 9:05:44 AM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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To: Toddsterpatriot

Gold, buy low, sell high.........


3 posted on 10/04/2006 9:09:06 AM PDT by Red Badger (Is Castro DEAD YET?........)
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To: Toddsterpatriot

Weren't the gold bugs screaming about building houses of gold and gold going to 10,000 an ounce just a few months ago?


4 posted on 10/04/2006 9:09:17 AM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Toddsterpatriot

10 year chart.

5 posted on 10/04/2006 9:10:00 AM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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To: Toddsterpatriot
$561.60, down from $581.80

Ouch. Can you help me on the percentage?

6 posted on 10/04/2006 9:10:26 AM PDT by 1rudeboy
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To: Proud_USA_Republican
Some still think it will break $1600, in the next 4 years.
7 posted on 10/04/2006 9:10:30 AM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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To: Toddsterpatriot

Silver and copper have been lower the past couple days. Natural gas seems to be the only mineral commodity holding steady or trending up.


8 posted on 10/04/2006 9:10:42 AM PDT by RightWhale (Repeal the law of the excluded middle)
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To: 1rudeboy

3.472%


9 posted on 10/04/2006 9:11:15 AM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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To: Toddsterpatriot

I bought a LOT of gold in the 300 dollar range. I'm not crying .


10 posted on 10/04/2006 9:12:35 AM PDT by Kozak (Anti Shahada: " There is no God named Allah, and Muhammed is his False Prophet")
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To: Proud_USA_Republican

Yes. The gold ads say that this is an even better time to buy gold. Maybe it is, but the bottom of the mineral commodity pullback is apparently still not reached.


11 posted on 10/04/2006 9:14:10 AM PDT by RightWhale (Repeal the law of the excluded middle)
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To: Kozak
Hope you booked some profits.
12 posted on 10/04/2006 9:15:53 AM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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To: RightWhale

Neither has the oil patch hit a bottom yet. Untill they do, don't invest in either.


13 posted on 10/04/2006 9:50:39 AM PDT by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Toddsterpatriot; GodGunsGuts
I currently have gold positions spread out from just under the mid-600s all the way down to just under $580. Hopefully, we have bottomed...

Ouch...

What's your take GGG?

14 posted on 10/04/2006 10:20:54 AM PDT by Fan of Fiat
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To: Proud_USA_Republican

Crude oil is mineral, also natural gas. So is water, but water is not yet listed on NYMEX. One day it will be.


15 posted on 10/04/2006 10:28:04 AM PDT by RightWhale (Repeal the law of the excluded middle)
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To: Fan of Fiat

I agree with Jim Sinclair:

Posted On: Wednesday, October 04, 2006, 2:08:00 PM EST

The Short Trap Of A Lifetime

Author: Jim Sinclair

Dear Friends

"One of the saddest lessons of history is this: If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. We’re no longer interested in finding out the truth. The bamboozle has captured us. It is simply too painful to acknowledge -- even to ourselves -- that we’ve been so credulous"
-Carl Sagan




Markets are bigger than all central banks put together. Manipulation of psychology is what prices depend on. This allows for non-recognition by the masses of what is really out there. This can be maintained for some time but not all the time. We may well be near that point when the bamboozle is running its course.

Gut checks are never easy. There are days when even looking at markets becomes a chore.

One thing I know is that we are headed for the short trap of a lifetime in the gold price. Not only has nothing changed whatsoever, but the drama is playing out note for note according to the FORMULA. The FORMULA is absolutely correct.

All this has been helped along the way in preparation for the November elections. With the economy heading lower however the average guy is unimpressed by the new highs in the equity market. As Chairman Volcker said, this is an hour glass situation where the many at the middle of this economy are being buried while the super rich are getting super richer. It will be interesting to see if a bull equity market gets the incumbent legislators reelected.

The entire scenario now depends on corporate earnings as stated in the FORMULA. What is taking place is totally dollar negative as corporate earnings impact the formula. All that support Treasury International Capital flows now is the US equity market. Slowing business will cut earning and tax revenues. There is absolutely no question about that. Business when contracting naturally contracts at an accelerating rate.

First media denied there was any slow down. When the slow down became apparent they declared a soft landing. They are wrong on that as well.

Gold will do what the dollar does inversely, not what the stock market does.

As gold breaks down below December $580 the gold price is in the process of building a bear trap that might be a few hundred dollars.

It is still all the US dollar multiplied many times in the gold price. The energy market and gold are market liquidating bankrupt hedge funds.

Gold is headed to $1650 via the magnets.


Today

Services in U.S. Grow at Slowest Pace in Three Years.
Wal-Mart Cuts Growth Estimate After Finding Mistakes.
U.S. Stocks Rise on Rate Optimism; General Motors, Boeing Gain.
General Motors, Renault and Nissan Terminate Alliance Talks.
Bernanke Says Housing in `Substantial Correction.

The FORMULA is correct:

First interest rates rise affecting the drivers of the US economy, housing, but before that auto production goes from bull to a bear markets.

This impacts many other industries and the jobs report. An economy is either rising at a rising rate or business activity is falling at an increasing rate. That is economic law 101. There is no such thing in any market as a Plateau of Prosperity or Cinderella - Goldilocks situations.

We have witnessed the Dow rise on economic news indicating deceleration of activity. This continues until major corporations announced poor earnings, making the Dow fall faster than it rose, moving it deeply into the red.

The formula economically is inherent in #2 which is lower economic activity equals lower profits.

Lower profits leads to lower Federal Tax revenues.

Lower Federal tax revenues in the face of increased Federal spending causes geometric, not arithmetic, rises in the US Federal Budget deficit. This is also true for cities & States as it is for the Federal government.

The increased US Federal Budget deficit in the face of a US Trade Deficit increases the US Current Account Deficit.

The US Current Account Balance is the speedometer of the money exiting the US into world markets (deficit).

It is this deficit that must be met by incoming investment in the US in any form. It could be anything from businesses, equities to Treasury instruments. We are already seeing a fall off in the situation of developing nations carrying the spending habits of industrial nations; a contradiction in terms.

If the investment by non US entities fails to meet the exiting dollars by all means, then the US must turn within to finance the shortfall.

Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.

This will further contract business activity and start a downward spiral of unparalleled dimension because the size of US debt already issued is of unparalleled dimension.

Therefore as you get to #12 you are automatically right back at #1. This is an economic downward spiral.

I heard all this "slow business" as negative to gold talk in the 70s. It was totally wrong then. It will be exactly the same now.

Respectfully,
James Sinclair


16 posted on 10/04/2006 11:39:42 AM PDT by GodGunsGuts
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To: GodGunsGuts; Toddsterpatriot; Fan of Fiat
With the economy heading lower

I can see how one might think the economy is heading lower.

Of course, it requires one to buy lots of gold on margin and be caught leaning the wrong way.

17 posted on 10/04/2006 11:57:32 AM PDT by BeHoldAPaleHorse ( ~()):~)>)
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To: GodGunsGuts; Fan of Fiat
What is taking place is totally dollar negative as corporate earnings impact the formula. All that support Treasury International Capital flows now is the US equity market. Slowing business will cut earning and tax revenues.

Last I heard, earnings were growing at double digit rates.

As gold breaks down below December $580 the gold price is in the process of building a bear trap that might be a few hundred dollars.

I don't speak goldbug, is he saying gold may drop a few hundred dollars or gold may rise a few hundred dollars?

18 posted on 10/04/2006 11:57:34 AM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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To: GodGunsGuts

Just out of morbid curiosity, what is the "FORMULA"?


19 posted on 10/04/2006 11:58:23 AM PDT by Fan of Fiat
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To: Fan of Fiat
Starts here:

First interest rates rise affecting the drivers of the US economy, housing, but before that auto production goes from bull to a bear markets.

Gets dumber from there.

20 posted on 10/04/2006 12:00:41 PM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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