If you blinked, you missed the US$ rally
Just like that, the US$ has given back all of last week’s modest gains and then some and gold is rising to another fresh record high in response. Assuming an 1100 open in the SPX and a gold price of 1165, the S&P 500 is down more than 7% this year in gold terms. Any belief that Bernanke’s comments last Monday on the US$ engendered some Fed concern (implying a change of stance to alter the trend) with its weakness was somewhat reversed with comments from Fed Pres Bullard yesterday who said he wants to continue buying MBS past the March expiration of the program. Also in an FT interview, Fed Pres Evans said the Fed may not raise rates until “late 2010, perhaps later in terms of 2011.” Thus, the belief of lower rates for longer remains. Russia’s central bank said they raised its gold holdings in Oct by 500k to 19.5mm ounces. Also helping the euro was the Nov Euro Zone composite manufacturing and services index rising to a 2 yr high.
November 23rd, 2009 at 9:19 am
USD rally, we hardly knew ye…
November 23rd, 2009 at 10:12 am
[...] One possible alternative to owning gold today would be to diversify some capital into silver. While silver has many of the trading characteristics of gold in that it truly is a precious metal and can be a good storage of value, silver is also a commodity that is used in various industrial processes. Nearly every single ounce of gold that has been mined is now in circulation in the form of artifacts, jewelry, or bullion. There are precious few actual uses for gold besides just being a precious commodity. Other Articles of Interest Three Indications Gold and Silver Will Continue to Rise Agriculture in Focus – Fertilizers Sprout Profits FMMF: It’s Raining Silver! Ritholtz: If You Blinked, You Missed the US$ Rally [...]
November 23rd, 2009 at 11:18 am
this will work until it doesn’t