Gold Prices Update 06 June 2010
Saturday, June 5, 2010 at 09:59PM
Gold Prices in Gold
Gold Comparison Chart 06 June 2010.jpg

A crazy end to the day with the DOW losing 323 points, the S&P 500 down 38 points, Silver down $0.55/oz, the USD up 1.05, gold prices up $13.00/oz and the HUI down 9.89. So we have gold and the dollar heading north arm in arm, but the associated mining stocks headed south arm in arm with the DOW. Silver managed to ignored gold and fell out of bed all by itself.

Worse than expected jobs numbers out the States were credited with the fall in the broader markets, Hungary joined the list of European countries requiring life support, so the euro continues to oscillate, as though looking for a final resting place. A number of countries came in to support the euro, including China, the support being based on the premise that there is nowhere else to go! Well Iran thinks otherwise as the Iranian central bank has announced that it will sell 45 billion euros from its foreign exchange reserves to buy dollars and gold, China's official Xinhua news agency reported on Wednesday, citing unspecified Iranian media reports. Xinhua said that the sales would be conducted in three stages and that the first had already begun, citing unnamed sources. It also said that other Gulf states had also started cutting their euro holdings. So, not everyone is sticking around in the hope that all will come right in eurozone.

Xinhua News Agency 06 June 2010.jpg

It appears to us that more and more governments will recognize that gold prices are heading higher and that they in turn will want more and more of their wealth placed in the sector that is outperforming all others. As gold challenges and overcomes its previous historic high we hope to see the stocks catch fire and move ahead with some gusto. We are still of the opinion that the USD is a flawed currency, however, at the moment it is considered to be the best of a bad bunch and is enjoying its moment in the sunshine. When the dollar turns down there will be little in the way of choice left for any government officials with half a brain and the metals will sparkle beyond belief.



Have a good one.

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Accumulated Profits from Investing $1000 in each OPTIONTRADE signal 14 May 2010.jpg

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