|
Gold Surges To Three Week High As Dollar Tanks
Strongest rally for precious metal in nine months
|
|
|
 Gold
prices have surged to to three week highs as the stock market
and the U.S. economy continue to flounder, leaving investors
seeking a safe haven in hard assets.
Gold futures for December increased by around 1 percent, $9.90
to $1,209.20 this morning on the Comex in New York.
The rise constitutes the eighth day straight gain for gold,
the longest rally since last November, reaching its highest
peak since July 15th.
The run comes in the wake of a decline for the dollar, which
today hit a three-month low against the euro following a payroll
report that signaled the U.S. will be slow in recouping jobs
lost in the recession.
The greenback was also down 0.6 percent against a basket of
six currencies. U.S. stock index futures also fell sharply.
"The dollar is getting odious compared to the euro, which
was the rankest thing around in the first half of this year,"
Frank McGhee, head dealer at Integrated Brokerage Services LLC
told Bloomberg.
"If the Fed has to do something more accommodative to
spur the economy, you’re going to see an explosive rally
in gold." he added.
Ole Hansen, senior manager at Saxo Bank, told Reuters
that the payroll data had proved "a bad report that could
bring forward additional monetary expansion, which can be dollar
negative and therefore supportive for gold."
Other investors see gold re-establishing its typical relationship
with the dollar after both bounced higher in recent months on
the back of risk aversion.
"We saw that negative correlation shift to a positive
correlation between the dollar and gold since January, up until
the last few weeks," said RBS analyst Daniel Major.
"Gold is going to fall back more into its traditional
relationship with the dollar," he said.
Silver prices also rose today in line with gold to $18.45 versus
$18.31.
----------------------------------
With the current economic conditions you cannot
afford to be uninformed. Bob Chapman’s International Forecaster
is the foremost in financial and economic newsletters. Published
twice a month by surface mail or 6-8 times a month by e-mail,
you won’t want to miss a single issue of this newsletter.
For a limited time Midas Resources and The Alex Jones Show are
offering to you a chance to get a FREE one year subscription
to the International Forecaster!
When you purchase the Gold Franc containing
a fifth ounce of gold, at an exceptional price from Midas Resources,
you will also receive a full one year subscription of the International
Forecaster ( $159.95 value) FREE!
Call Midas Resources to get this special limited
offer today at 1-800-686-2237 and tell them you got the email
offer from Alex Jones or purchase it now by
visiting the GCN website.
----------------------------------------------------------------------------------------------------------------------
Alex
Jones LIVE, A Fourth Hour Of Streaming TV Now Added To The Infowars
Radio Show
Click here to get your subscription today!
----------------------------------------------------------------------------------------------------------------------
|
INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
|
|
