THE SPOT PRICE OF GOLD sank yet again at the London opening on Friday, falling 2.6% to touch a nine-month low as US crude oil prices dropped 1.3% to trade below $114 per barrel. Full Story
The dollar's continuing sharp rally to new record monthly highs against most major currencies (as high as 1.4696 against the euro this morning ) has seen gold's brutal recent sell off continue. In conjunction with the dollar's continuing rally we have seen oil prices continue to fall (Light Sweet Crude Oil Future - SEP08 at 113.20 down 1.57%.) Full Story
By: Chris Mullen, Gold-Seeker.com - 14 August, 2008
Gold rose over $10 to $836.65 and silver climbed more than 30 cents to $15.11 by late trade in Asia, but both metals then fell back off for most of the rest of trade and ended near their lows of $804.35 and $14.10 with losses of 2% and 3.92%. Full Story
Much has been made of the recent rebound in the greenback: Has the dollar bottomed? Is this rally sustainable? There was certainly good upside momentum over the past couple of weeks. However, suggestions that the dollar is on the long-term mend are premature as best. Perhaps a little perspective would be helpful. Full Story
THE SPOT PRICE OF PHYSICAL GOLD added to Wednesday's sharp bounce early in Asia and London Thursday morning, nearing the Wall Street open almost 4.4% above the week's low at $836 per ounce. Full Story
Since the start of the credit crisis, one year ago, gold remains up 27% (from $650 to $830). It has thus outperformed all major equity indices all of which are down some significantly since the start of the credit crisis (see table). With no end in sight to the credit crisis indeed there are many indications that conditions could deteriorate even more in the coming months, investors should be mindful of gold's outperformance and continue to focus on the long term. Full Story
There was some news that “Hedge funds are exiting commodities following their recognition that the US Fed intends to fight inflation with rate hikes and that regulators intend to fight "speculative abuses" in various markets with limits.” I do not believe it. This is just some churning of short term portfolio away from commodities before the US presidential elections and nothing else. Full Story
By: Chris Mullen, Gold-Seeker.com - 13 August, 2008
Gold rose to about $825 and silver rose to $14.88 by late trade in Asia before both metals fell back near unchanged in London, but they then rallied back higher in New York and ended near their new session highs of $829.60 and $14.917 with gains of 2.08% and 2.39%. Full Story
Gold has firmed after recent losses stalled just shy of the $800 level. The dollar has eased somewhat and oil has rebounded, helping to underpin the yellow metal. Full Story
SPOT GOLD PRICES gave back all of a 1.5% rally late-morning in London on Wednesday, dropping below $815 per ounce in thin but frantic trade as the US Dollar continued to rally against pretty much everything. Full Story
Gold's recent merciless sell off continued yesterday. But the dollar's incredible five day surge appeared to come to an end yesterday, with a sell off on Wall Street (on concerns about financials and slowing global growth) stopping it in its tracks. Full Story
By: Chris Mullen, Gold-Seeker.com - 12 August, 2008
Gold dropped from yesterday’s close of $822.45 to as low as $801.65 by early trade in Asia before it rose to find a decent gain at $827.00 by early trade in New York, but it then fell back off into the close and ended with a loss of 1.71%. Silver dropped from yesterday’s close of $14.63 to as low as $13.99 by early trade in Asia before it rose to find an over 1% gain at $14.82 by about 9AM EST, but it also fell back off into the close and ended with a loss of 1.26%. Full Story
Gold has extended its losses in the wake of Monday's violation of key support at 845.45 (02-May low). Continued weakness in oil and strength in the dollar has prompted long liquidation in gold futures and ETFs. Full Story
The speculative paper sellers in the derivative and futures markets have clearly won this latest bout in the gold markets. However, long term value investors are likely to again have the last laugh as the physical market and real supply and demand issues will again likely lead to higher prices in the coming weeks. Full Story
All I can say is that US dollar gains are pain for precious metals and energies. Highly oversold conditions exist in gold, silver and crude oil. Growth rates in other countries are now slowing down. This is the lagging effect of higher energy prices and a US slowdown. Full Story
Throughout the 3-week rise in the dollar there had been market rumors of government intervention. GoldMoney founder James Turk may have uncovered the smoking gun; noting that US government paper in custody for central banks had jumped from $2,349 bln to $2,409 bln between 16-Jul and 07-Aug, an annualized growth rate of more than 38%. When governments intervene in the FX market and buy dollars, they will usually use those dollars to buy US treasuries. Full Story
By: Peter Zihlmann, Zihlmann Investment Management AG - 11 August, 2008
The major difference between the two is that the BUGS index is made up exclusively of mining stocks that do not hedge their gold positions more than a year-and-a-half into the future. This makes the BUGS Index much more profitable than the XAU when gold prices are rising, but can also compound its losses when gold declines. BUGS is an acronym for Basket of Unhedged Gold Stocks. The index was introduced on March 15, 1996 with a starting value of 200. Full Story
Physical buying is likely to reemerge as we are now at 14 week lows, well below the 200 day moving average and more price sensitive buyers (particularly in India) should again provide a floor to prices. They have not and we appear to be experiencing another brief hiatus from financial and economic reality. Full Story
With one per cent of the world’s oil supply flowing through Georgia which is now at war with neighbouring Russia it should be obvious enough that the recent dip in oil and precious metal prices is over, and that a new rally has started. Anybody buying gold or silver bullion or stocks today will make a fortune over the next few months. Full Story
We sometimes forget that whenever the stock market misbehaves with breathtakingly bizarre perversity, that it is merely punishing traders who harbor fantasies of reaping easy profits by doing the obvious. Friday, for instance. Before the opening bell, Fannie Mae shares were getting slaughtered on news of huge new write downs, and full-blown war was erupting between Georgian Russia and a well-armed army of Moscow-backed separatists. In Pakistan, Musharraf’s by-now fragile stand against chaos was being threatened by impeachment. And yet, with all these new troubles to beset an already gravely troubled world, index futures were down only fractionally -- revving up for what turned out to be spectacular gains on the day. Full Story
A week of dramatic developments ended with the dollar surging to 6-month highs and silver crashing an important support level and plunging. Gold, however, did not break below its important $850 support level, although as we shall see this certainly does not mean it won't soon. Full Story
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