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Gold Hits $1,000 an Ounce

Discussion in 'General Discussions and Lounge' started by TeamPlayer, Mar 13, 2008.

  1. TeamPlayer

    TeamPlayer New Member Webmaster

    Just a few years ago people were asking whether gold could reach $500 an ounce.

    Today it has broken through the $1,000 an ounce barrier!

    Here`s a report on this...

    Gold hit a record high above $1,000 (U.S.) an ounce on Thursday and oil reached an all-time peak over $110 a barrel as a historically weak dollar and falling equities triggered a flight to commodity markets.

    Soft commodities such as cocoa and coffee also rallied and industrial metals rose but were restrained by fears of a global economic slowdown.

    The dollar sank to a 12-year low, and an all-time low versus the euro, while share markets lost ground as the investors fretted over the health of the U.S. economy and global financial sector.

    U.S. gold futures rallied to a $1,000 an ounce while spot gold jumped to a fresh peak of $997.50 an ounce and was at 997.10 an ounce just after noon in London, up more than 2 per cent from $981.90/982.70 an ounce in New York on Wednesday.

    “The environment of other asset classes has made commodities very attractive,” said Michael Lewis, global head of commodities at Deutsche Bank.

    “They look very much like a safe-haven, because if you look at other asset classes there is a lot of risk associated with equities, carry trades and so on.”

    Fears of a recession and expectations of aggressive rate cuts from the U.S. Federal Reserve to help shield the U.S. economy is piling pressure on dollar, while also boosting gold and oil as alternative investments.

  2. temi

    temi Facilitator Webmaster

    The prolonged weakness of USD is making commodities priced in USD like Gold and oil hit new hight. I wish I have gold to sell :(
  3. TeamPlayer

    TeamPlayer New Member Webmaster

    The trouble is that when investors buy gold they are often running for cover. It usually means confidence in traditional sources, such as banking, property, stocks and shares etc is very low.

    I doubt the recent budget has instilled much confidence, in fact quite the reverse, and I reckon the US is in for a very bumpy ride over the coming months. What`s bad for the US inevitably is also bad for the rest of the world in economic terms. The dollar is almost in freefall, yet at one time it was one of the strongest currencies in the world.

    Will gold go much below the $1,000 mark? Who knows, but history shows that once it goes up it usually keeps on climbing over time. Would love to find a few gold bars in my attic. lol
    Last edited by a moderator: Mar 14, 2008
  4. Mega B

    Mega B New Member Webmaster

    Yes gold has hit a Record high but our clowns in the treasury sold this lot when it was Low:

    From The Sunday Times

    April 15, 2007

    GORDON BROWN is to face questions in parliament after revelations that he disregarded advice from the Bank of England before he sold off more than half the country’s gold reserves at the bottom of the market.
    Insiders involved in the decision have broken ranks after an 18-month battle in which the Treasury has blocked attempts by The Sunday Times to make public the official advice received by Brown before he sold the gold.
    They have revealed that Bank of England officials had serious misgivings over the chancellor’s determination to sell 400 tons of bullion in a series of auctions between 1999 and 2002, when the price was at a 20-year low. Since then the price has almost trebled, meaning the decision cost the taxpayer an estimated £2 billion.

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