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Another Golden Record!

January 8, 2008

Gold hit a fresh all-time high above $875 US$ in early London trade. A rebound in oil prices and further dollar weakness sparked a fresh round of buying. The US$ is poised to drop below $76.00 as the markets open this morning in America.

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Currencies and oil are the main drivers behind this at the moment. Investors had stops taken out at $870 and that propelled gold higher this morning. And, it’s held above $870 so we should see it consolidate now until the US markets open- which is about an hour from when I am writing this.

Gold has risen by over $200 since the onset of the credit crunch in mid-August last year, as a trinity of factors have collided propelling it to a series of record highs. The weak US dollar and a skyrocketing oil price have boosted the precious metal as market players look for an alternative to the most common source of cash reserves and a hedge against inflationary pressures, while the economic uncertainty emanating from the subprime debacle has seen gold reassert itself as a store of wealth in times of turmoil.

Oil prices have rebounded today after retreating from the $100 mark on profit taking and economic slowdown fears over the previous two sessions. The dollar has slipped throughout the morning as market players weigh the possibility of further interest rate cuts from the US Federal Reserve at the upcoming meeting on January 30. Additional buying motivation today is coming from the start of gold future contract trading within China tomorrow, with some market players positioning ahead of the launch.

Written by Ernie · Filed Under Gold News 

Comments

8 Responses to “Another Golden Record!”

  1. $1,000 Gold Soon? on January 10th, 2008 3:19 pm

    […] When I started buying gold about 7-8 years ago, seeing that the tech bubble had run it’s course, one could buy an ounce of gold for $275. As gold kept steadily climbing, I kept buying. My last BUY was around $640 an ounce early in 2007. I have sold a little between $780 and $840. One doesn’t need to be greedy. So, with gold now just under $900 where is it going? It just keeps setting new records almost every week. […]

  2. Falling FICO! on January 11th, 2008 8:52 am

    […] Is there any wonder gold is soaring? It’s real money- not fake fiat paper. […]

  3. $1,000 Gold And Recession! on January 14th, 2008 8:28 am

    […] Gold surged to a historic high above $910 an ounce, as investors rushed in to buy the metal on further weakness in the dollar and expectations of a sharp cut in U.S. interest rates, analysts said. Ben Bernanke and crew will meet January 30th and expectations are a cut of at least 50 basis points. Will we see $1,000 gold soon? […]

  4. $1,000 Gold And Recession! on January 14th, 2008 8:28 am

    […] Gold surged to a historic high above $910 an ounce, as investors rushed in to buy the metal on further weakness in the dollar and expectations of a sharp cut in U.S. interest rates, analysts said. Ben Bernanke and crew will meet January 30th and expectations are a cut of at least 50 basis points. Will we see $1,000 gold soon? […]

  5. Stagflation Scenario on January 15th, 2008 9:22 am

    […] verify the things the I’ve been saying for the last year. And this is another reason that GOLD is headed to $1,000 an ounce and […]

  6. Interest Rate Drop Boosts Gold! on January 30th, 2008 4:24 pm

    […] Gold jumped in after market trading Wednesday after the Federal Reserve slashed its key interest rate again. This is an all-out inflationary move that boosted the metal’s appeal as a stable investment. The Fed cut its benchmark federal funds rate by a half percentage point, following a bold three-quarter-point reduction last week that was aimed at staving off a U.S. recession. After one of the worst starts for the stock market (in history) the Fed is worried. […]

  7. Interest Rate Drop Boosts Gold! on January 30th, 2008 4:24 pm

    […] Gold jumped in after market trading Wednesday after the Federal Reserve slashed its key interest rate again. This is an all-out inflationary move that boosted the metal’s appeal as a stable investment. The Fed cut its benchmark federal funds rate by a half percentage point, following a bold three-quarter-point reduction last week that was aimed at staving off a U.S. recession. After one of the worst starts for the stock market (in history) the Fed is worried. […]

  8. $1,000 An Ounce Gold! on March 13th, 2008 9:05 am

    […] How does that compare to your stock positions, 401k, and other investments? Gold just keeps setting one 2008 record after another. […]

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