$800 Gold & $100 Oil?
October 31, 2007
If you would have told anyone that a year ago, maybe even six months ago, they would have left your presence mumbling. Who can afford what a gallon of gasoline will cost from $100 a barrel oil? Granted, oil is only at $95, but…! And while gold dropped back a few bucks after hitting $800 for the first time since 1980, anyone would tell you that speaks volumes about a very dangerous and uncertain future. Continue Reading »
Gold Tops $800
October 31, 2007
Gold barreled above $800 an ounce Wednesday for the first time since 1980 as investors cheered the Federal Reserve’s decision to lower its benchmark interest rate by a quarter point. The Fed dropped its federal funds rate to 4.50 percent, as the markets widely anticipated. Lower rates tend to undermine the dollar and raise the allure of precious metalsas an investment alternative. The dollar stumbled to another low against the euro following the Fed’s decision on Wednesday, helping drive gold higher.
Gold Prices Rally
October 31, 2007
Gold barreled closer to the $800 mark Wednesday, as the dollar sagged to freshlows and energy prices surged on concerns about tightening crude supplies. With the Federal Reserve’s decision on interest rates looming, the dollar stumbled to another low against the euro and raised the allure of precious metals as investment alternative. The euro, which hit a high for the fourth straight trading day, bought a record $1.4466 in early trading; gold prices hovered at a 27-year peak.
Still Not At Bottom
October 30, 2007
Treasury Secretary Henry Paulson said it’s too soon to call an end to the U.S. housing slump, as the Federal Reserve meets to discuss cutting interest rates in the world’s biggest economy. Will the Fed lower by 25 basis points or 50? Surely they can’t keep the Fed funds rate unchanged. We will all know on Wednesday. Continue Reading »
Gold zooms towards $800
October 29, 2007
Up another $5 for Monday! Gold rallied to its highest level in 28 years on Monday and targeted $800 as oil surged to a record peak and the dollar tumbled on speculation over a U.S. interest-rate cut. Geopolitical tension in the Middle East helped push investors towards gold. “The market is in a bull run. The consensus here is that gold could reach $800 in a short term and that’s motivating the market higher. Also the risk for a U.S. rate cut is feeding the trend,” said Frederic Panizzutti, analyst at MKS Finance.
Diversity Visa Lottery
October 29, 2007
The congressionally mandated Diversity Immigrant Visa Program is administered on an annual basis by the Department of State and conducted under the terms of Section 203(c) of the Immigration and Nationality Act (INA). Section 131 of the Immigration Act of 1990 (Pub. L. 101-649) amended INA 203 provides for a class of immigrants known as “diversity immigrants”. Section 203(c) of the INA provides a maximum of up to 55,000 Diversity Visas (DV) each fiscal year to be made available to persons from countries with low rates of immigration to the United States. Continue Reading »
N.Y. strike deal on Immigration IDs
October 27, 2007
The Bush administration and New York agreed Saturday on a compromise creating a more secure driver’s license for U.S. citizens and allowing illegal immigrants to get a version. New York is the fourth state to reach such an agreement, after Arizona, Vermont and Washington. The issue is pressing for border states, where new and tighter rules are soon to go into effect for crossings. Continue Reading »
$787 After a $16 Up Friday!
October 26, 2007
The dollar hit a series of record lows against the euro today as a recent batch of weak US economic data fuelled speculation the Fed will cut rates again at its meeting next week. A weak dollar tends to benefit gold by making it cheaper for holders of other currencies. It also boosts oil prices by making them relatively cheaper for the same reason. And then there’s the drumbeat of war grew louder since yesterday, gold prices followed in lockstep with record oil prices and new lows set by the US dollar against the euro.
A Safe Haven
October 26, 2007
Gold climbed to a 28-year peak on Friday and platinum traded just below an all-time high, as a record low dollar and lifetime-high oil spurred buying. Gold, often seen as a hedge against oil-led inflation and traditionally deemed a safe-haven asset, was gradually advancing towards the next big target of $800 an ounce while the dollar struggled to find a solid base.
Inflationary Hedge
October 25, 2007
Gold for December delivery closed up $5.40 at $771 an ounce on the New York Mercantile Exchange.
Investors loaded up on gold as an inflation and geopolitical hedge, but were also exhibiting a markedly higher degree of confidence in the probability of a Fed rate cut next week, in the wake of poor existing home sales data as well as the Merrill Lynch losses reported yesterday.
Border Agent Crackdown
October 25, 2007
U.S. border agents plan to expand to a second portion of the Texas border a program to criminally prosecute and incarcerate all illegal immigrants as authorities look to expand the program borderwide. “This is the chief’s view of the future. We’re talking national,” said Ramon Rivera, Border Patrol spokesman. “It sends a strong message the we’re not letting illegal border crossers have a free ride.” Continue Reading »
Two In A Row
October 24, 2007
Gold finished up for the second straight day on Wednesday in U.S. trading. December bullion closed at $765.60 an ounce, up $2.50 on the session. Gold finished the session up $3.10 on Tuesday. The precious metal fell in early trading as the U.S. dollar saw some strength against the other majors. But as the dollar gave back the gains against the euro, gold climbed higher. Bullion often moves opposite the dollar because of the precious metal’s hedge value. Overall, the metal has been trending higher since the middle of August. Bullion has added more than $100 an ounce from its closing levels of August 16, the final day before the current rally began.
The Housing Bust
October 24, 2007
It had been predicted for 4 years. I have said on numerous occasions, since 2002, that you simply cannot give people with bad credit mortgage loans and think all will be well. You can’t give someone a 4% first year mortgage loan that expands to 8% in five years and think they can afford the payments. You can’t give people 100% loans, or even 125% loans (which was done), or no interest loans and not see massive foreclosures down the road. And now the chickens are coming home to roost! Continue Reading »
Correction Aborted?
October 23, 2007
One day doesn’t make a correction. The massive sell off of stocks and equities last Friday, became a $10.70 drop for gold on Monday. But on Tuesday, the US$ turned tail and headed South and with oil continuing to drop more, the pending “correction” failed to materialize as gold closed up $6.10.
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