Skip to comments.Gold futures rally above $1,500 an ounce as US Dollar Suffers Steep Losses
Posted on 04/20/2011 6:35:07 AM PDT by SeekAndFind
Gold futures rallied above $1,500 an ounce on Wednesday, as the U.S. dollar fell sharply and investors bought the precious metal as a hedge against inflation and economic uncertainty.
Gold for June delivery /quotes/comstock/21e!f:gc\m11 GCM11 +0.47% rose $10.70 to $1,505.80 an ounce in electronic trading on Globex.
The weaker dollar, European sovereign-debt worries and Standard & Poors move Monday to cut its outlook on the U.S. sovereign rating have all spurred appetite for gold.
In the currency markets on Wednesday, the greenback posted steep losses as the euro /quotes/comstock/21o!x:seurusd EURUSD +1.25% rallied 1.1% to $1.4498. The dollar index /quotes/comstock/11j!i:dxy0 DXY -0.85% , which tracks the performance of the greenback against a basket of rival currencies, dropped 0.8% to 74.490. Read more on the dollars retreat.
Gold and the dollar tend to move in opposite directions. A lower dollar makes gold cheaper and therefore more attractive for holders of other currencies.
Gold prices came under significant selling pressure at the start of the year on the back of a run of positive macroeconomic data, analysts at Barclays Capital said in a research note.
Rising geopolitical tensions across the Middle East and North Africa, uncertainty following the events in Japan, fears of higher inflation, a weaker dollar, the recent resurfacing of European sovereign debt risk, and now heightened concerns over the U.S. have outweighed the recent rate hikes to drive prices to fresh highs, the analysts said.
Prices of other metals also rose on Wednesday, with silver continuing to hover at 31-year highs. Silver for May delivery /quotes/comstock/21e!f1:si\k11 SIK11 +1.77% added 63 cents, or 1.4%, to $44.55 an ounce.
May copper /quotes/comstock/21e!f1:hg\k11 HGK11 +1.38% gained 7 cents, or 1.6%, to $4.30 a pound.
(Excerpt) Read more at marketwatch.com ...
All because when you print unlimited paper it becomes worthless.
I expect a 200 or so point DJIA rally on phoney baloney sales figures. CNN is blasting that party line this morning.
“Comsumer spending increases!”
(because the price of everything is climbing)
Copper at 29 cents/oz. Is a copper dollar coming?
The rise in the price of metals, be it Gold, Silver or Copper tells us that there is something wrong with our MONETARY POLICY.
I have often wondered if Obama appreciates the impact on his own legacy of the collapsing dollar. I don’t think he does and I have a feeling he is a lost cause.
To Obama, Ideology trumps Reality. As Reagan says “They know so many things that ain’t so”
The futures market yesterday was putting the value of the dollar below a 1,500th of an ounce of gold on what the Bloomberg News attributed to concerns about escalating U.S. debt.
Theres a lot of blame to go around in respect of the debt, including to Congress, which has the constitutional authority to regulate the value of the dollar. But it is not the portraits of the leaders of Congress that are put on Americas currency. The portraits that normally go on our currency are portraits of the presidents,* whose treasury secretary signs the notes we use.
Yet as president, Mr. Obama has never given us a major speech in which he talks about how he views money or what he thinks of what has become of the dollar during his presidency.
The value of the greenback has, for the record, fallen more than 43% from the 853rd of an ounce of gold that it was worth at the end of the day on when Obama took his oath of office.
That is less of a decline than the 68% slide in the value of the dollar under George W. Bush. But Bush was in office eight years. The steepness of the plunge under Mr. Obama is breathtaking.
So, what are we hearing from the Messiah nowadays ?
Obama he offers a long discredited theory, saying, There are some benefits from the dollars decline, obviously it is just making our exports cheaper and we needed to get some balance in our trade deficits.
He mentions nothing about Obamacare ( which will balloon spending ), HIS OWN BUDGET with its $16. TRILLION deficit, his making it exteremely difficult for us to exploit our own energy resources, and his insistence on raising our debt ceiling.
He has done nothing but increase spending, while making it ever harder for our energy producers who exploit our own onshore and offshore oil reserves. The collapsing dollar has done nothing for our trade deficit, and the costs for food and fuel are soaring. It took a revolt by the Tea Party movement to spur any kind of action on deficits.
RANT ENDS HERE....