Gold rallied sharply last week and was up nearly 9% despite continuing uncertainty and a very mixed performance in stock markets. The US dollar index fell some 4% on the week and it looks increasingly likely that the dollar may have topped out and may soon resume its bear market.
Gold rallied sharply yesterday, for the fourth day in a row, on sharply higher oil prices (some 10%) and a weaker dollar. Gold gave up some of its gains overnight in Asia as the dollar bounced after recent sharp losses in volatile trade. Gold’s rally yesterday had nothing to do with an increase in risk appetite. If that was the case, why have stock markets internationally been falling sharply again in recent days and yesterday?
There have been a spate of articles in the press recently including the Personal Finance section of the Irish Times touting jewellery and diamonds as safe haven “rock solid” investments. Rock solid investment Looking for a rock-solid investment? A girl's best friend and a smart way to invest This is dangerous nonsense and irresponsible journalism of the highest order. Investors have lost enough money in recent years due to appalling investment “advice” regarding equities and property and it is important they do not compound that by “investing” in diamonds and jewellery. As ever real diversification in all asset classes is essential.
Gold rallied sharply yesterday, for the third day in a row, on higher oil prices and a weakening dollar.
Gold rallied for a second day yesterday on concerns regarding the deepening US recession and the dollar. Gold has continued to rally in Asian and early European trading. The bounce in oil prices is likely lending support as is continuing robust physical demand internationally. Asian equity markets were largely positive overnight but European ones are again under pressure this morning. The global deflationary spiral appears to be accelerating as are desperate attempts by politicians and central bankers to reflate their way out of the recession.
It wouldn't be suprising if you had never heard of backwardation. Though many commodities markets are frequently in backwardation, especially for seasonal or perishable/soft commodities, it has only happened twice in history in precious metals.
After falling sharply last week, gold rallied yesterday on the back of a weaker dollar, higher oil (Light Sweet Crude Oil Future - Combined - JAN09 is up more than 6% yesterday after falling an incredible 25% last week) and commodity prices and the Obama fiscal stimulus package. The economic recession will get significantly worse before it starts to improve, US President-elect Barack Obama said in an interview at the weekend.
Gold and silver were flat yesterday and have remained unchanged in Asian and early European trading. Gold is set for a fourth straight week of gains on safe haven demand and on the likelihood of further dollar declines with further reductions in U.S. and international interest rates and further quantitative easing next month. Euro gold and British pound gold remained firm at €633 and £529 after recent gains.
Both gold and silver fell slightly yesterday as the dollar and stock markets rallied on renewed increasing risk appetite. Euro gold and British pound gold remained near record highs of €628 and £532. Gold has traded sideways in Asian and early European trading despite the horrendous terrorist attacks in India.
On the foot of recent reports that China is planning to diversify some of its massive foreign exchange reserves into gold, The Central Bank of the Russian Federation has released its latest
Gold was largely unchanged yesterday after rallying to as high as $830 and has traded sideways in Asian and early European trading. Open interest levels in gold and silver on the COMEX have fallen to extremely low levels showing that nearly all the speculative froth has been liquidated and remaining longs are "strong hands".
Gold has given up some of yesterday's and the last four days' gains. Profit taking seems the most likely explanation as the dollar remains largely flat but the weakness in oil may be contributing to gold's weakness. Continuing unprecedented volatility in markets is leading to further safe haven demand.
Gold gains 6% in one week In a remarkable week for the yellow metal, strong resistance at $770 last Monday may now be the level of support as Gold rallied on Friday, finishing up $50 on the day, 6% on the week.
Or is that Bailout to the power of Bailout?
Gold maintains its safe haven status In an increasingly risk averse environment and in the wake of tumbling commodity markets, gold is maintaining a bid, albeit in a tight trading range with strong resistance at $777 , confirming its status as a safe haven asset. Gold is currently trading at $755 (12:15GMT).
Excerpts from The Financial Times' View from the Markets online interview with Jim Rogers: FT: It’s a year since we last interviewed you.
Citigroup to cut 52,000 jobs Vikram Pandit, the Chief Executive of Citigroup announced yesterday that in a bid to revive their ailing share price, a massive 52,000 jobs would be cut. That's 1 in every 7 employees and slash costs by $10bn. Citi shares have lost more than 75% of their value over the past year and suffered over $50bn in writedowns and credit provisions. An analyst likened Citigroup to a super tanker; turning it around takes a long time.
The Washington Times's Lawrence Hunter wrote last week that U.S. President-elect Barack Obama has an opportunity to reset the economy and restore the U.S. dollar to its preeminence as the world's reserve currency by reestablishing the gold standard.