-- Posted Friday, 11 September 2009 | Digg This Article
| | Source: GoldSeek.com
Dec Gold: Open= 998.5 High= 1013.7 Low= 996.3 Last= 1007.8 +11.0
Gold prices consolidated under the $1,000 level the past four sessions, with rallies being sold into and dips being bought. The dip below $985 yesterday found plenty of buyers in the market and the week ended with a break above the recent consolidation range and a close well above the past five closes.
A slew of positive news this morning gave bulls some buying impetus, such as rising U.S. consumer sentiment, a 12.4% annualized rise in Chinese industrial production last month, and news that Chinese oil imports are 18% higher than a year ago. Even though crude and gasoline prices fell today, the declines were offset by the U.S. dollar falling to fresh lows, the sixth straight day lower and the lowest level in over one year. The value of the dollar was in the news in another negative way recently, as well.
The U.S. Treasury’s economic and financial representative to China, Mr. David Dollar (not joking), recently spoke a conference in the PRC, saying:
The general issue is that China has a huge amount of reserves and it makes some sense to diversify what you put those reserves [into and]…it is healthy to have a wide and different type of reserve currencies.
Indeed, our own representative is acknowledging that the best course of action is to move away from the U.S. dollar. Is there any further reason to believe the dollar will miraculously turn around when those with the ability to defend the value of the dollar not only no longer willing to do so but are in fact giving open advice to step divest from our currency. If this is not the Treasury’s policy then expect him to be recalled back to the States, but if his statements are left to stand, then let all holders of the U.S. dollar to be further warned. Mr. Dollar tried to soften his words by saying that the U.S. dollar "happens to be the best choice" and that "its one of the few very good places where you can put large amounts of assets and have confidence of their future value." Then is there good reason for Chinese to diversify its holdings from U.S. dollars if officials are confident that the value of our currency will not fall?
It is becoming worrisome that even as the U.S. monetary base peaked back in May, the figure is rising and may be trending towards great levels. While the Fed and Treasury are talking tough about being willing to fight inflation when it comes and will use the tools at their disposal, it does not appear that they’re willing to hit the brakes just yet.
Review charts on these markets here www.britefutures.com. Remember that futures and options can be used for bullish or bearish positions; feel free to contact me to discuss trading strategies. Each contract/option = 100 ounces, a $1 move in a futures contract = $100.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use our online paper trading service BriteTrak, contact me at tom@altavest.com. Visit www.altavest.com to request a Free Trading Kit. Keep in mind that there is risk of loss in all trading.
Thank you,
Thomas Hartmann
Altavest Worldwide Trading, Inc.
800 994 9566 x109
949 488 0545 x109
Fax 949 488 7625
-- Posted Friday, 11 September 2009 | Digg This Article | Source: GoldSeek.com
