Gold Closes Above $800 at Highest Level Since 1980
November 3rd, 2007Via: MarketWatch:
Gold futures rallied Friday to close above $800 at their highest level in nearly 28 years, boosted by rallying crude-oil prices and the dollar’s tumble to a new record low against the euro.
Gold for December delivery rallied $14.80 to finish at $808.50 an ounce on the New York Mercantile Exchange. Earlier, the contract hit an intraday high of $810.70, a level not seen since 1980.
The record high for Nymex gold was $875 set on Jan. 21, 1980, and the record settle was $825.50 set on the same date.
…
“Gold had already regained its footing overnight, as fresh dollar selling emerged once again after yesterday’s feeble attempt at a rally,” said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note.
“The metal’s powerful surge is reflective of growing apprehensions that something, somewhere in the global financial system might go awry, despite interest rate maneuvers designed to keep things going,” Nadler said.
Gold hitting this price is indeed an indicator that “something big is going down”, but as I’ve said previoulsy, the devaluation of the dollar under the Fed’s inflationary regime means that gold would have to be at about $1600 in 2006 dollars (as I’m sure this year will mark the start of what will become a very rapid freefall for the US currency) to be as expensive as it was in 1980.
Yeah. Jim Sinclair, a man much to be respected, says we ain’t seen nothin’ yet. “The next OTC derivative to melt is the Credit Default Derivative in which Merrill is a top player.”
Katie, bar the door.
http://www.jsmineset.com
Does anyone believe in the Elliot Wave concept of forecasting? I have no money, but a friend who is a wealthy communist says he trusts this site: http://www.sandspring.com/charts2007/cdj102907.html
They keep citing alignment of the planets. There is no doubt that predicting psychology is key, yet wouldn’t it be an adaptive arms race that changes through time?