In overnight trading Gold reached an 18 month high and, as we write this, it has broken NEW HIGH GROUND and is currently at $1,036.30! That price broke through the previous all-time high of $1,033.90 achieved on March 17, 2008.
What is causing this recent price rise and will it be sustained? There is incredible pressure on the US Dollar to no longer be the currency of choice for trading oil. According to a report released by “The Independent,” a British news organization, “Gulf Arab (states) are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, and GOLD...”
This unparalleled pressure on the US Dollar has created a buying frenzy for Gold. Whenever times of economic uncertainty are upon us, smart investors flock to GOLD! This news is everywhere in the mainstream financial media morning headlines:
“Gold May Advance for Second Day as Weaker Dollar Stokes Demand” – Bloomberg.com
“Potential End of Dollar-Based Oil Deals Helps Gold Shine” – MarketWatch.com
Tuesday, October 6, 2009
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