Gold Continues Pushing Higher
Nov 25th, 2008 | By Doug Casey | Category: Financial NewsGold fell back below $800 in Hong Kong, but once London opened the buyers showed up at the counter, driving it to a peak of $830 just before noon in New York after which it eased slightly, but held steady through the Globex to finish at $821.70, up $20.00. Overnight, gold has fallen off.
Platinum also pushed higher through the European and U.S. markets, rising nearly to $870 before slipping a bit late in the day to end at $865, up $41. Overnight, platinum has moved lower.
Silver had a killer day after dropping as low as $9.48 in the far East, blasting straight up to top out at $10.68 in the late morning and coming off only a little thereafter as it closed at $10.57/oz., up 93 cents. Overnight, silver is trending lower. (Click here for charts)
Thanksgiving week in the U.S. began with gold buyers giving thanks for the safe haven offered by the yellow metal and bidding it up to a five-week high as platinum, and especially silver, got swept along in the relentless ride up.
For a change, the usual suspects lined up solidly in favor of the precious metals, with oil popping higher, equities on a tear and (probably most importantly) the dollar getting hammered.
“The dollar is getting its teeth kicked in,” said Matt Zeman, of LaSalle Futures Group in Chicago. “You have big money flowing back into gold. The risk appetite is returning, and the dollar is getting decimated.”
Frank McGhee, of Integrated Brokerage Services in Chicago, pushed that analysis further, saying that, “The overall impact of what the bailout is going to cost will ultimately become very negative for the dollar. All this money that ran into Treasuries with no yield, and the government still has to go out and borrow money.”
And analyst Dan Norcini, writing on jsmineset.com, had this to say: “Short term profit taking did not last very long [Sunday] evening and early [Monday] morning as dip buyers wasted little time in making their presence felt. Technically, this is quite positive as it indicates growing confidence on the part of the bulls and growing apprehension on the part of the bears. Last evening it had appeared that the bears were going to beat gold back down towards $780 but the upward surge in the Euro and the rally in the equities over the CITI bailout news was too much for the gold shorts. Amazing what a few billion dollars sprinkled hither and yon can do for a reflation trade.”
Source: Gold Continues Pushing Higher
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.