The September selling binge accelerated during Wednesday trading on the Canadian markets as the Bank of Canada left interest rates unchanged and investors continued to unwind their resource trade positions.
Martin Hutchinson in Money Morning says that over the long-term oil and agricultural commodities are likely to deflate.
This is because, once the threat posed by the US housing crisis has passed, the Federal Reserve will be forced to increase interest rates to fight inflation. Other countries will follow, which will deflate the commodities boom.
However, over the short-term, gold, whose movements are directly linked to inflation, is likely to bounce. Martin reckons a price tag of $1,500 an ounce for the yellow metal is entirely possible. He recommends two ETFs and four gold miners to profit from this situation…
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A “Lost Decade” doesn’t have to translate into lost profit opportunities.As the global financial crisis continues to escalate, the United States is increasingly facing the prospect of a long malaise that could easily eclipse Japan’s Lost Decade of the 1990s in both duration and depth.
U.S. Federal Reserve Chairman Ben S. Bernanke is caught between a rock and a hard place right now. Sure, he would prefer that you focus on “core inflation,” since it excludes sharply rising food and oil prices. But we all have to eat and we all consume energy.
It was another volatile start to the trading week on the Canadian markets and by the end of the session the bulls were victorious on the big board but the bears remained well entrenched on the junior bourse.
Despite oil hitting record highs and gold making a nice move, the resource-rich Canadian markets made little headway against the bears during Friday trading as financial concerns south of the border sparked a liquidation of equities.
Editor’s Note: Gold is back. The yellow metal traded at a 10-week high today. Gold for immediate delivery hit $941.35 an ounce at 1:25 p.m. in Singapore, after reaching $946.08 yesterday. Silver for immediate delivery added 0.2 percent to $18.14 an ounce. But Russel McDougal from Investor’s Daily Edge notes that junior mining companies have not seen soaring commodity prices feed into stock gains. This, he says, means a big chance to make big money.
Editor’s Note: The dollar’s weakness is gold’s strength, says Mike Caggeso. As inflation pushes the dollar downwards, it pushes gold in the opposite direction. You should invest in gold now before the Federal Reserve raises interest rates and spoils the party.
Gold jumped today in London over market fears of an Israeli attack on Iran. Bloomberg reports that gold for immediate delivery rose $5.06, or 0.6 percent, to $930.46 an ounce by 12:05 pm. Futures rose $3.50, or 0.4 percent, to $931.80 in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.
