Wednesday, December 14, 2005
Gold, US Dollar Move Lower
As Market Watch reports, the US dollar is still moving in tandem with gold. "Gold futures prices extended their slide in electronic trading early Wednesday, despite a sharp decline in the U.S. dollar, as traders continued digested the Federal Reserve's decision to raise interest rates. Gold for February delivery was last down $9.00 at $515.10, but had been down as much as $10.40 at a low of $513.70 earlier in the session."
"'The gold market seems to be unsure of how to take the new language by the Fed,' said veteran commodities trader Kevin Kerr. 'Gold traders are a bit weary from the volatile rollercoaster ride this week and it's only Tuesday,' said Kerr."
"The Fed's latest rate hike didn't help the dollar, which slumped 1.2% vs. the yen to a 2-week low of 118.64. Against the euro, the buck lost 0.6% to $1.2014. A lower dollar typically helps boost gold prices, as the resulting higher import prices puts upward pressure on inflation."
"March silver followed gold lower, losing 29.7 cents, or 3.3%, to close at a nearly two-week low of $8.585 an ounce. January platinum closed down $22.20 at $995.90 an ounce and March palladium finished down $19.10 at $273.25 an ounce."
"'The gold market seems to be unsure of how to take the new language by the Fed,' said veteran commodities trader Kevin Kerr. 'Gold traders are a bit weary from the volatile rollercoaster ride this week and it's only Tuesday,' said Kerr."
"The Fed's latest rate hike didn't help the dollar, which slumped 1.2% vs. the yen to a 2-week low of 118.64. Against the euro, the buck lost 0.6% to $1.2014. A lower dollar typically helps boost gold prices, as the resulting higher import prices puts upward pressure on inflation."
"March silver followed gold lower, losing 29.7 cents, or 3.3%, to close at a nearly two-week low of $8.585 an ounce. January platinum closed down $22.20 at $995.90 an ounce and March palladium finished down $19.10 at $273.25 an ounce."
# posted by Ben Jones @ 7:15 AM 
Comments:
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Getstucco,
Gold coupled with the US dollar recently and decoupled with the Swiss Franc. Given the multiple deficits in the US, I have to believe this is a short term fluke and the situation bears watching. Rest assured this blog will keep an eye on it.
Gold coupled with the US dollar recently and decoupled with the Swiss Franc. Given the multiple deficits in the US, I have to believe this is a short term fluke and the situation bears watching. Rest assured this blog will keep an eye on it.
flrr,
I agree about the transaction costs. If you look back at some posts here called 'the true price of gold', I go over my experiences with physical gold and silver. I hope to review egold and currencies with gold backing in the future. At least you can draw interest on those.
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I agree about the transaction costs. If you look back at some posts here called 'the true price of gold', I go over my experiences with physical gold and silver. I hope to review egold and currencies with gold backing in the future. At least you can draw interest on those.
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