They were doing that, quite recently, when it was at $800 an ounce.
Posted on 08/02/2011 2:15:21 PM PDT by SeekAndFind
NEW YORK (TheStreet ) -- Gold prices hit record highs Tuesday as the Bank of Korea bought more gold and as the Senate passed the debt ceiling deal.
Gold for December delivery popped $22.80 to close at $1,644.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,646.80 and as low as $1,618.80 while the spot gold price was skyrocketing almost $30, according to Kitco's gold index.
Silver prices added 78 cents to close at $40.09 an ounce. The U.S. dollar index was up 0.22% at $74.48 while the euro was down 0.36% vs. the dollar.
With the debt-ceiling issue basically behind U.S. markets, investors are now looking at the health of the economy and the picture isn't bright. Worries of slowing global growth were the main factors boosting gold prices. Not only have quarterly growth numbers been anemic and July's manufacturing index was barely above the critical 50 growth-mark, but the debt plan aims to slash spending by $2.5 trillion in the next 10 years, making it even harder for the U.S. economy to grow. The lingering risk of a downgrade of America's credit rating was also a factor as the major U.S. equity indexes were all losing more than 1% in late trades. Beyond the safe-haven appeal of the yellow metal on a down day for stocks, Bank of Korea announced it has bought 25 tons of gold over the past two months. The stake is valued at $1.24 billion, or roughly $1,550 an ounce, and it marks the country's first gold purchase since 1998. Central banks buy gold when they need to diversify or increase their holdings as mandated by the government and are not necessarily market timers, but they do buy as a long-term investment.
(Excerpt) Read more at thestreet.com ...
Maybe they are expecting a war with North Korea soon.
Funny, no one on this site is mocking the ‘Gold bugs’ anymore. I wonder why?
GOLD SETTLED AT $1,657/oz AT THE CLOSING OF THE BELL TODAY.
I personally don’t see any fundamental reason why the move higher will stop from here on as this so called spending cuts looks like a sham and the increase in debt ceiling will all but ensure more money printing from the Fed.
Expect QE3 to come next.
It’s over $1,461 now.
RE: Funny, no one on this site is mocking the ‘Gold bugs’ anymore. I wonder why?
You can’t mock the gold bugs because what the government is doing to our debt will only HELP push the price of gold higher. The fundamentals impel the drive towards gold and silver.
More spending means more dollar printing, more dollar printing means more dollar devaluation ( and inflation ).
Where else can investors go for safe haven? The fundamentals all point to either precious metals or safe haven currencies like the Swiss Franc or the Aussie and even the Canadian Loonie.
I personally expect Gold to hit $2,000/oz by year end.
Remember, we are going to repeat this debt battle by year end when this SuperCommittee to cut spending ( AKA increase revene, AKA tax increases ) convene a few months from now.
They were doing that, quite recently, when it was at $800 an ounce.
$2000 by Labor Day. America is f**ked.
Buy low, sell high
South Korea is expecting some bad bad bad times ahead.
Dang! They had it going on too..
We’re heavily Samsung here.. but that could change .. we just did a phone upgrade, wifey has a iPhone 4 and loves it. I went Infuse 4G ,, nice little gadget. We’ll now be able to provide coverage for riots in Greece and Italy on our cruise.. and we still need to buy a good tablet.. open to recommendations.. iPad2 is too rich.. either a Thrive or Xoom is more likely. it’s nice to have external ports. :-)
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24-hour Spot price
Gold 1,660.30 +18.40 +1.12%
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