Posted on 12/01/2009 5:41:43 AM PST by blam
Gold Hits Record Near $1,200/Oz As Dollar Slips
Tue Dec 1, 2009 5:53am EST
By Jan Harvey
LONDON (Reuters) - Gold hit record highs near $1,200 an ounce on Tuesday as dollar weakness fueled buying of the metal as an alternative asset, while investors speculating on further gains were cheered by its recovery from Friday's lows.
Spot gold hit a peak of $1,198.70 an ounce and was bid at $1,194.90 an ounce at 1021 GMT (5:21 a.m. EST), against $1,179.10 late in New York on Monday.
"The fact that we are seeing the dollar weaken is helping to drive gold," said Ole Hansen, senior manager at Saxo Bank.
He said investors had been cheered by the strength of gold's recovery after it fell to below $1,140 an ounce last week, with the fall being met with strong fund buying.
"Everyone was waiting for that correction, and the way gold recovered suggested there was a lot of buying lurking in the wings (among) people who missed the opportunity to get into the market in the first place," said Hansen.
[snip]
(Excerpt) Read more at reuters.com ...
This is not entirely about the dollar. Japan is going to resume monetizing its debt, announced this morning.
Check this out
http://www.fgmr.com/federal-reserve-buying-mortgage-backed-securities-debases-the-dollar.html
We are in a whole heap of trouble! If you don’t have gold and silver in your possession, I’m afraid the bus will leave without you! In which case you better have plenty of lead! Many countries have already stopped buying our debt, instead opting to fill their coffers with gold. The depth and scope of corruption is surreal! Batten down the hatches!
Thanks for the additions.
:) Your welcome say do you have a ping list? If so please add me you always have such good information.
ping
Commodities / Agricultural Commodities
Nov 30, 2009 - 04:43 PM
By: Ned_W_Schmidt
Over the Thanksgiving holiday driving I-95 in Florida provided some insight into the state of at least some segments of the U.S. economy. I-95 is the major North-South highway on the East coast of Florida. It runs from Miami to Georgia.
Driving it from mile marker 47 to about mile marker 300 provides a fairly complete sample of travel activity in the state. Travel activity in Florida is a reflection of economic activity within the nation.
First, traffic was non existent. Both legs of the round trip were made in record time. More interesting though was the price of gasoline.
Normally, the best price on gasoline on my weekly route is in Davie, west of Fort Lauderdale. Tuesday the tank was charged for the trip. On the highway returning home, gasoline was purchased cheaper on the interstate than in Davie.
That gasoline on that major highway was cheaper than at home suggests demand for gasoline is extremely weak in Florida. One would also have to conclude that the U.S. economy is far weaker at the grass roots level than government statistics and economists' forecasts suggest.
[snip]
It's done this numerous time already - go right up near the $1,200 mark and back off.
What's likely happening is that auto-sell orders kick in. It did this at the $1,000 also, then took off after that.
This is not entirely about the dollar. Japan is going to resume monetizing its debt, announced this morning.
Very good point. Many are making the mistake in thinking that what's happening with gold is solely related to some inverse relationship with the dollar, not realizing that nearly ALL significant first-world currencies have had their respective spigots opened.
In other words, a year from now the dollar might be worth the same amount of Yen or Euros as it is today, but all three might have far less buying power than they do now.
Those who think the price of gold is simply related to the American dollar aren't looking at the whole picture.
Sorry, no ping list.
Lotta resistance at 1200...
And the DOW is up over a 100...
Yup. Dollar down, gold up, stocks up.
We’ve been doing this dance since April.
BOJ Takes New Monetary Easing Steps
BY YUKA HAYASHI, MEGUMI FUJIKAWA AND TAKASHI NAKAMICHI
TOKYO -- Japan's central bank unveiled a surprise monetary easing effort Tuesday that could inject up to $115.7 billion into an economy facing deflation and a soaring currency, but it failed to impress financial markets or economists eager for bolder action.
The Bank of Japan's move, which followed increasing political pressure from Japan's new government, underscores the pessimism surrounding the Japanese economy.
Japan has posted two straight quarters of economic growth and seen a resurgence in demand for its exports. But declining consumer prices and the yen's strength against the dollar have raised concerns that Japan could slip back into ...[snip]
(Subscription required to the WSJ for more)
More on Gold
http://www.lewrockwell.com/spl/new-gold-rush.html
http://www.lewrockwell.com/sardi/sardi137.html
http://www.reuters.com/article/globalMarketsNews/idUSTRE5A80MQ20091201
Silver dilly-dallied a bit under 19 bucks for quite a while, but just broke through bigtime.
Current spot $19.16
Look for gold above 2K by closing.
OOps... I meant 1200, not 2K!!
Gold just broke it... current spot 1200.70
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