COMEX gold prices hit new record high of $1061.40 per ounce in third straight session

COMEX gold prices hit $1,061.40 per ounce, a fresh record high for a third straight session as investors bought the metal as a hedge against a weaker dollar. The recent rally has taken gold prices above the $1,032.80 level reached in March 2008. Gold has been one of this decade's best performing assets, rising on average by 15% per year. The US dollar has been hit by reports that the Gulf nations are thinking of ditching USD-based oil prices. Arab states are said to be in talks with Russia, China, Japan and France to replace the dollar with a basket of currencies. Gulf officials have denied it. It is the fear of a bout of global inflation, caused by government recession-fighting fiscal measures, that analysts see as the big cause behind the gold rally.

Like I've mentioned on the goldclubasia.com forum, it's probably wishful thinking at this stage but I'm looking for a rally to $1100+ where we sell the interim top, then a drop back to test $1000 where we buy the interim bottom. A fellow investor says he would like to see $800 to load up, whilst other forum members are talking about a pullback to $950. So there you are, a diverse lot of opinions out there. It *is* encouraging to say the least that we are apparently pulling away from a double-top scenario but I would like to see a few tests at either $1030 or $1000 to establish some sort of gold price support level. Dare I mention that we could be looking at consolidation if this thing keeps up? :)

NYMEX crude oil prices soar above $72 on economic recovery, euro rally

online.wsj.com :

Crude oil prices soared Thursday [8 Oct 2009] as the dollar headed toward a 2009 low against the euro, both moves fueled by increasing optimism about the world economy. NYMEX light, sweet crude for Nov 2009 delivery reached $72.55 per barrel intraday, the highest since 18 Sep 2009. Oil prices shot up to a 3-week high as investors sold out of the dollar and into assets expected to benefit from an economic recovery, including equities and commodities, while the EUR/USD forex exchange rate hit $1.4818. In the short term, oil prices may not yet crack the 2009 intraday high of $75 set in August, with oil inventories still above average levels.

- That's right, $75 continues to be the all-important resistance level for now. The consolidation pattern of +/- $70 might have a few more weeks to run yet, as the bullish factors of money supply, EUR/USD, Iran-Israel work against the bearish factors of oil inventory levels, economic fundamentals and the credit crisis, still ongoing. And of course, few people outside the peakoiler community still continue to acknowledge Peak Oil - the proverbial 800-pound gorilla in the living room - a critical factor that is biding its time to roar back with a vengeance.

(2009-10-09 09:00:50 SGT) [Energy] Permalink

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