Thursday March 13, 2008

Gold hits $1000 an ounce for the first time in history

bloomberg.com :

Gold traded at $1,000 an ounce for the first time in New York as credit-market turmoil spurred demand for bullion as a haven from falling stocks and the dollar. April futures climbed as much as $19.50, or 2 percent, to $1,000 an ounce on the Comex division of the New York Mercantile Exchange.

Silver, platinum and palladium also advanced as the dollar fell below 100 yen for the first time since 1995 and to a record low against the euro. Carlyle Group's mortgage-bond fund moved a step closer to collapse. Gold climbed 19% this year in New York as the dollar fell and world equity markets declined.

Gold's all-time inflation adjusted record is $2,224 on Jan. 21, 1980. Prices in 1980 rose as high as $850 after U.S. inflation was running in the double digits and oil was climbing after a decade of Middle East instability. Assets in the StreetTracks Gold Trust, the biggest exchange- traded fund backed by gold, were unchanged yesterday at 652.5 metric tons, compared with the record 654.9 tons on March 10.

- 13 March 2008 will be remembered as a historic moment, where the price of gold crossed the magic $1000 mark for the first time. Similar to oil at $100, once it works through the $980-1000 consolidation range and vaults over $1000 and stays there, $1000 will transform from a resistance level to become a support level.

The next probable resistance levels are likely to be around $1100, $1300, $1500 and then $2000. Support levels are $950, $900, $850, and $800. Quite similar to the resistance and support levels for crude oil, I might add, if you multiply those by 10.

This is simply amazing. The US dollar is getting blown away left and right by all the major currencies, the euro, the yen, the yuan, and all the major commodities, crude oil, gold, silver, platinum, you name it.

See also :

1. US dollar sinks to new lows, gold price hits $955.70 all-time record, crude oil hits $101.43 record high
2. Gold and oil soar as inflation fears grow
3. Gold rises to record $949.20 as oil sparks demand for inflation hedge
4. Hyper-inflation : early warning signs

(2008-03-13 23:18:26 SGT) [Biz] Permalink

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