Did $1000 for gold mean anything?The way it hippy-hopped right over the figure today makes me think no but it doesn't really matter.
The greenback is oddly holding in a little better than I would think given the news of the day.
The market is so bi-polar that nothing should be a surprise. There is no close (up a lot or down a lot) today that would shock nor would a crash be a shock either.
No great info for you on this post, just a chance to put up a funny picture and the thought that while the news today seems big I don't, as a function of the brevity of the time line, think this is the end of the news. I am convinced there will be more.
3 comments:
Have you noticed that VIX is finally sustaining levels above 30? I take this as a good sign, but I also suspect that further declines are yet to come.
Gold has moved up on the back of a tanking US dollar, as has oil. There needs to be a retracement against the euro to closer to the 1.52 mark. Then commodities should take a breather.
Gold will fluctuate, but ultimately as these sub-prime, then derivatives and other credit issues continue worldwide, gold will continue forth towards 1650. The retracement of the Euro will be good for gold, as Europeans begin putting money into gold due to their inflation. The additional Fed rate cuts, and the printing of more money to bail out banks will devalue the US dollar, increasing inflation, and even more money will head into gold as a hedge against crisis. This is all inevitable, as we are now past the point of no return.
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