Gold: Record High
June 8th, 2010WARNING: This is not a recommendation to buy, sell of hold any financial instrument.
Short term gold longs, beware of the possible double top situation around the $1250 level.
Via: Bloomberg:
Gold rose to a record on demand for a haven from financial turmoil in Europe.
Gold futures rose to $1,254.50 an ounce in New York and also touched highs in sterling, euros and Swiss francs. European equities fell and Fitch Ratings said the U.K. must deepen budget cuts to protect its top credit rating. Gold has gained 13 percent this year as investors have lost confidence in currencies. The euro has plunged 17 percent against the dollar.
“The fear in Europe is very palpable, and it’s spreading to the U.S.,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Gold is the beneficiary of increased worries about expanding sovereign debt, slowing economies and the temptation to devalue currencies. The market is focused on the expanding contagion.”
