Geithner sends the dollar on a thrill ride…  A failed UK gilt auction…  China set to recover first…  AUD and NZD rally again… And Now… Today’s Pfennig!

In the currency market, the dollar stabilized against the euro after it pared back early losses that pushed the exchange rate past $1.43. Late Monday, the euro was trading at $1.4013 vs. $1.4065 on Friday.  As with other markets, the eyes of traders were on the deteriorating situation in the Middle East.

Gold rose in the far East, peaking at $890 in early Hong Kong trading, fell back to $875 by the close of the Comex, but rallied through the Globex to finish at $880.60/oz., up $11.90. Overnight, gold has dropped off.

Oil above $40 a barrel; geopolitical risk returns… Israeli air strikes go into third day… China to build up oil reserves while price is low

Currency markets stabilize (for now)…  Data packed holiday shortened week…  China cuts rates… Indian rupee falls… And Now… Today’s Pfennig!

It was cloudy in the Algerian city of Oran on Wednesday…and a fairly pleasant 14 degrees in the open air… But the assembled leaders of the OPEC oil exporters’ cartel must have been feeling rather hot under the collar. Since hitting a peak of $147 in July this year, the price of oil has fallen by about $100. That has put the oil exporting countries under a huge amount of pressure. And now they are determined to drive the price of oil back up again.

Dollar tanks as Fed cuts interest rates to 0-0.25 pct… Oil traders eye OPEC production decision * SPDR Gold Trust bullion holdings rise again…

Bill Bonner says the world as we know it is finished. We are entering a new era of inflation and dollar weakness, and it’s here to stay. Even T-bonds aren’t a safe haven anymore…

The lastest oil advance was what I call a “melt-up.”

The base metals were all in the red on Thursday. Copper backed down for a second straight day, dropping from the pre-dawn hours to late morning, after which it recovered slightly to finish at $3.844/lb., down 4¾ cents.