GOld,Mony,News,purchase
Stabilized gold and silver prices to some extent during the last day, with the price of gold to find a strong support level near $ 1550. Has received good bids on the silver drops about $ 28 per ounce.
As can be seen courtesy of the MarketOracle chart below, the gold price could drop as low as $1,300-$1,400 and still be in a long-term uptrend. A 2008-style financial panic and dash for the dollar could result in a breach of the 35-month moving-average at the $1,300 mark. Given the likely monetary policy response to such a meltdown, however, one can feel pretty safe in assuming that this move – nasty though it would be for gold owners – would be nothing more than short-term in nature.
Gold price finds buying support
2011-DEC-16
Money pile Gold and silver prices have stabilised somewhat over the last day, with the gold price finding strong support near the $1,550 level. Silver has received good bids on drops towards $28 per ounce.
As can be seen courtesy of the MarketOracle chart below, the gold price could drop as low as $1,300-$1,400 and still be in a long-term uptrend. A 2008-style financial panic and dash for the dollar could result in a breach of the 35-month moving-average at the $1,300 mark. Given the likely monetary policy response to such a meltdown, however, one can feel pretty safe in assuming that this move – nasty though it would be for gold owners – would be nothing more than short-term in nature.
Gold price chart
Likewise, as can be seen from the second chart, the story of the US dollar versus other currencies over the last 10 years is one of continual decline – albeit one that has slowed since the Dollar Index hit an all-time low at just under 72 back in March 2008. Since then, the financial crisis has helped prop up the dollar against other currencies, as banks scramble to recapitalise and hedge funds dash for the perceived “safety” of US Treasuries.
However, this relative strength should not be confused with absolute strength: the fact that the gold price has gone up by more than 55% since March 2008 is a good indicator that all is not well with the world’s reserve currency. The dollar can gain value relative to other currencies, while at the same time losing value against precious metals and other tangible assets.
This is especially so when one considers the serious economic problems bedevilling countries all over the world, problems exacerbated by growing political tensions. Yesterday saw the head of the Bank of France launch an outspoken attack on the United Kingdom’s credit rating – stating that the UK was more deserving of a downgrade than France. His criticisms have been echoed this morning by French finance minister Francois Fillon, who has commented: “Our British friends are even more indebted than we are and have a higher deficit, but the ratings agencies do not seem to notice this.”
ZeroHedge provides some good charts for readers to decide for themselves whether the UK or France is the best-looking horse in the glue factory. Suffice to say, neither economy is in a good state; the UK’s deficit is worse than France’s, but the latter’s debt-to-GDP level is higher than the former’s. Moreover, in contrast to France, the UK always has a willing last-resort buyer for its sovereign debt in the form of the Bank of England. However disastrous this debt monetisation may be in terms of future price rises, it does surely mean that a formal default from the UK is less likely than in France, which doesn’t have the dubious luxury of being able to print its own currency
As hedge funds, the Supreme Kyle Bass was discussed in a television interview several, while the recapitalization of U.S. banks and the United Kingdom, the euro zone, banks were not. Finally, the dress? United Kingdom in the "big problem"
Stabilized gold and silver prices to some extent during the last day, with the price of gold to find a strong support level near $ 1550. Has received good bids on the silver drops about $ 28 per ounce.
As can be seen courtesy of the MarketOracle chart below, the gold price could drop as low as $1,300-$1,400 and still be in a long-term uptrend. A 2008-style financial panic and dash for the dollar could result in a breach of the 35-month moving-average at the $1,300 mark. Given the likely monetary policy response to such a meltdown, however, one can feel pretty safe in assuming that this move – nasty though it would be for gold owners – would be nothing more than short-term in nature.
Gold price finds buying support
2011-DEC-16
Money pile Gold and silver prices have stabilised somewhat over the last day, with the gold price finding strong support near the $1,550 level. Silver has received good bids on drops towards $28 per ounce.
As can be seen courtesy of the MarketOracle chart below, the gold price could drop as low as $1,300-$1,400 and still be in a long-term uptrend. A 2008-style financial panic and dash for the dollar could result in a breach of the 35-month moving-average at the $1,300 mark. Given the likely monetary policy response to such a meltdown, however, one can feel pretty safe in assuming that this move – nasty though it would be for gold owners – would be nothing more than short-term in nature.
Gold price chart
Likewise, as can be seen from the second chart, the story of the US dollar versus other currencies over the last 10 years is one of continual decline – albeit one that has slowed since the Dollar Index hit an all-time low at just under 72 back in March 2008. Since then, the financial crisis has helped prop up the dollar against other currencies, as banks scramble to recapitalise and hedge funds dash for the perceived “safety” of US Treasuries.
However, this relative strength should not be confused with absolute strength: the fact that the gold price has gone up by more than 55% since March 2008 is a good indicator that all is not well with the world’s reserve currency. The dollar can gain value relative to other currencies, while at the same time losing value against precious metals and other tangible assets.
This is especially so when one considers the serious economic problems bedevilling countries all over the world, problems exacerbated by growing political tensions. Yesterday saw the head of the Bank of France launch an outspoken attack on the United Kingdom’s credit rating – stating that the UK was more deserving of a downgrade than France. His criticisms have been echoed this morning by French finance minister Francois Fillon, who has commented: “Our British friends are even more indebted than we are and have a higher deficit, but the ratings agencies do not seem to notice this.”
ZeroHedge provides some good charts for readers to decide for themselves whether the UK or France is the best-looking horse in the glue factory. Suffice to say, neither economy is in a good state; the UK’s deficit is worse than France’s, but the latter’s debt-to-GDP level is higher than the former’s. Moreover, in contrast to France, the UK always has a willing last-resort buyer for its sovereign debt in the form of the Bank of England. However disastrous this debt monetisation may be in terms of future price rises, it does surely mean that a formal default from the UK is less likely than in France, which doesn’t have the dubious luxury of being able to print its own currency
As hedge funds, the Supreme Kyle Bass was discussed in a television interview several, while the recapitalization of U.S. banks and the United Kingdom, the euro zone, banks were not. Finally, the dress? United Kingdom in the "big problem"
إرسال تعليق