Gold dropped to below $778 an ounce in Tuesdays’ early New York trade before recovering some lost ground at $786 an ounce by 11.30 am.

Traders are saying the stronger dollar and OPEC decision not to lower oil output are the reason. We just wonder if liquidity problems are also in part responsible.

Continue reading …

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

 It seems accepted that investing in gold is now being seen as an alternative to equities. As equity markets have moved up or down so the EURO/USD currency exchange rate has reflected the price movement that is when the market moves up so the Euro strengthens against the dollar and vice versa.

The effect is that as equities move up so does the Euro resulting in a weakening gold price. Equities down, Euro weakens, gold moves up.

Continue reading …

Our last weekend summary pointed out that there was likely to be a reversal in the gold and other precious metal markets.

Continue reading …

Analysts at Credit Suisse, not known for their excessive optimism, announced today (Oct.30^th.) that they are expecting the upward trend in gold prices to continue in the long term. They are forecasting the yellow metal to reach $838 an oz in 2008, $950 an oz in 2009 and $1050 an oz in 2010.

As trader’s return from their vacations and markets regain their volume, the fluctuations in the stock markets can be put into perspective.
 

There can be no doubt that the US has entered into hard times, and it can be expected that
history will repeat itself with other western stock markets following suit.
 

Continue reading …

The story of gold is one of blood and beauty, crime and magnificence, lies and romance. Mans’ relentless pursuit of gold through the centuries has resulted in atrocities against humanity only outnumbered by religion, and spawned more scams, deceits and crimes than can be imagined.

From the alchemists of the middle ages to the criminals and politicians of today the ingenuity shown in parting gold from its’ legitimate owners remains unsurpassed in any other activity.

Continue reading …

Some recent news:

Last Friday spot gold ended the week at $649.65 per ounce, down by $4.65 or .71%.

The XAU Gold index, a weighted measurement of twenty-six gold stocks, fell 2.31%.

Another Middle Eastern country announced that it was reducing its US dollar holdings and diversifying its US dollar reserves

Continue reading …

Last weeks technical indicators saw gold continuing in a downturn in the short term but returning to the upward trend in the longer term.

Now the short term technicals are pointing positively for the yellow metal as the downtrend has reversed from its earlier drop down to the circa $655 level.

At the same time the European Central Bank has suspended gold sales until September but still clouding the issue is whether the sales by the Spanish Central Bank is continuing.

Continue reading …