07
Jul
2008

Gold Investments Market Update

Gold

Gold finished last week at $932.50 and was up $7.35 for the week. It has subsequently fallen in Asian and early European trading to below $921 per ounce.

While the dollar is marginally higher, oil has fallen quite sharply <$142.40 down nearly 2% – Light Sweet Crude Oil Future – Combined – AUG08> and this has seen profit taking by gold traders. Traders appear to have had stop loss orders at and just below $930 which exacerbated the move down.

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04
Jul
2008

Gold Investments Market Update – US Jobs Report Less than Expected; Based on BLS Statistical Assumptions

Gold

Gold was down $12.90 to $931.90 in New York yesterday and silver closed at $18.28, down 5 cents. Gold remained at these levels in Asia but has fallen near to yesterday’s lows in early trading in Europe.

Oil has fallen marginally <$144.40 down 0.6% – Light Sweet Crude Oil Future – Combined – AUG08> and the dollar is flat after yesterday’s strong gains.

Yesterday gold was sold extremely aggressively immediately after the U.S. jobs report was released at 1330 GMT.

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03
Jul
2008

Gold Investments Market Update – ECB Increases Rates as Trichet Warns of ‘Exploding’ Inflation

Gold

Gold rose to $944.80 in New York yesterday and was up $2.00; silver closed at $18.33, up 13 cents.

Gold has remained firm near 10 week highs on the surging oil price which reached a new record high today <$145.72 – Light Sweet Crude Oil Future – Combined – AUG08>. The dollar is flat today after its decline in value in recent days. Against the euro, the dollar looks set to fall through support at 1.60 in the coming days and 1.70 euro/dollar looks like a very real possibility by the end of September.

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02
Jul
2008

Gold Investments Market Update – Geopolitical Risk From U.S. and Israel Militarily Confronting Iran is Real

Gold

Gold surged to $942.80 in New York yesterday and was up $16.30 and silver closed at $18.20, up 78 cents.

Gold has succumbed to profit taking with the dollar flat and oil prices down marginally ($141.30 per barrel). However, geopolitical risk remains ever present and this should result in gold remaining well bid at these levels.

While the ISM data yesterday looked benign and was greeted by an increase in risk appetite, a deeper look at the numbers was very worrying in that it showed a leap in the Index of Prices paid number.

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30
Jun
2008

Gold Investments Market Update

Gold

Gold surged to $928.50 in New York on Friday and was up $16.20; silver closed at $17.62, up 50 cents.

While the dollar has strengthened somewhat, oil has again rallied sharply to new record highs (up 2.4% to over $143.60 per barrel
) and this should result in gold remaining well bid at these levels. Geopolitical risk and continuing tensions in the Middle East and between the U.S.

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30
Jun
2008

From the Sub-Prime to the Ridiculous

On a day when I read that rising fuel prices are putting a pinch on the world’s oldest profession
I am reminded that there are commentators that can laugh in the face of creeping economic woes.

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27
Jun
2008

Gold Investments Market Update – Gold has Largest One Day Up Move Since 1985

Gold

Gold surged to $912.30 in New York yesterday and was up $32.70; silver closed at $17.12, up 64 cents.

Gold surged in what was the largest one day move since 1985 as the dollar weakened, oil prices surged to new record highs and stock markets fell sharply. While gold was up some 3%, most U.S. stock indices were down some 3% and this continued in Asia and early European trading with gold rising to over $920.

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26
Jun
2008

Gold Investments Market Update – Money Supply Surge to Lead to Inflationary Depression in U.S.?

Gold

Gold closed at $879.60 in New York yesterday and was down $9.20; silver closed at $16.48, down 13 cents. Gold fell prior to and shortly after the Federal Reserve’s decision to keep interest rates on hold at 2%. However, with rates remaining extremely accommodative and inflation surging, gold soon recovered and rallied into the New York close and continued rallying in electronic trading.

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25
Jun
2008

Gold Investments Market Update – Inflation to Unleash a Financial Tsunami

Gold

Gold closed at $888.80 in New York yesterday and was up $4.40; silver closed at $16.61, down 16 cents. Gold fell initially in Asia, then rose in early European trading prior to falling again in recent trade.

With oil prices remaining near record highs, near $137 a barrel this morning and the dollar slightly weaker (it breached and remains close to 1.56 against the euro again this morning), gold should remain well bid at these levels but in the short term anything can happen and support is at $880 and $860.

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24
Jun
2008

Global Derivatives Market now valued at $1.14 Quadrillion!

The Bank of International Settlements, which seems to be the only institution that tracks the derivatives market, has recently reported that global outstanding derivatives have reached 1.14 quadrillion dollars: $548 Trillion in listed credit derivatives plus $596 trillion in notional/OTC derivatives.

Yes, that is Quadrillion. One and 15 zeroes!

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