Gold Sharply Higher on Rate Cuts
October 8th, 2008Via: Dow Jones:
New York gold futures traded sharply higher early Thursday following a coordinated rate cut by the Federal Reserve, European Central Bank and other major banks.
This has triggered safe-haven buying on ongoing worries about the world financial system, as well as buying as a hedge against potential inflation down the road as a result of easier monetary policy, traders and analysts said.
Around 8:40 a.m. EDT (1240 GMT), December gold was up $32.80 to $914.80 an ounce on the Comex division of the New York Mercantile Exchange. December silver was 54.5 cents higher at $11.925.
Gold was higher in overnight screen trading and remains firmer after initial volatility when the news broke that the Fed cut its federal-funds rate by 50 basis points to 1.5%. Others cutting rates included the Bank of Canada, Bank of England, European Central Bank, Sweden’s Riksbank and the Swiss National Bank.
“With the concentrated effort around the world, it shows fear,” said Charles Nedoss, senior account manager and metals analyst with Peak Trading Group. ” People are worried that No. 1, it is inflationary. And No. 2, where do you go from here if this doesn’t work.”
Right after I finish this post I’m going to go and pay every single bill I can afford to in order to clear out my checking account in the hope that they all clear through my account by Friday.
Yes isn’t it convienent that the G8 will meet this weekend, and then there’s a HOLIDAY for Banks and Wall Steet on Monday October the 13th!
Yes. I think waking up to check the value on our bank balances on October 14th might be the October surprise.
I guess we should be use to this by now. The weekend back door deals we’ve had shoved up our collective asses since B&C have been at the helm.
I for one think the dollar will be sent into the tank by the G8 this weekend to save ALL banks across the globe.
A rate cut on the dollar will cause all foreign investors to shun off the dollar as the safe haven, driving the dollar down, down, down. As if the dollar has been what? A medium of exchange.
A weekend meeting of the G8, a banking “holiday” on Monday? All of it stinks like a compost pile that isn’t cooking. Hmph. They probably have got the contractor all lined up to perform some kind of military industrial bill collection agency already all lined up to clean our clocks on unpaid bills. Sort of and kind of like how they had the contract all lined up to remove the “waste” from the World Trade Centers even before 9/11.
Isn’t this world so effing amazing?
And yes, I am crazy but I’m actually going to buy some stock with Mom’s money (I don’t have any to spare). I know I’ve posted a lot of stuff about my Mom on this site, but Dad, how I miss him. He’d be looking for stocks to buy right now. He’s telling me to buy something right now.
I don’t know what else to say about anything, but I’m also going to polish up the telescope for October 14th – just in case those aliens that are waiting to appear- just might arrive.