Posted on 05/07/2010 8:33:37 PM PDT by Jet Jaguar
Silver rises on spill-over effect from gold's run; gold ETF breaks asset record
Gold ended higher Friday, resuming its march upward as investors continued to be spooked by a potential European debt crisis, with silver riding on its coattails and vaulting more than 5%.
Gold for June delivery, the most active contract, settled $13.10 higher, or 1.1%, at $1,210.40 an ounce, a five-month high for the metal and closing in on its Dec. 3 all-time settlement record of $1,217.40 an ounce.
"The only place traders feel comfortable parking their money for the weekend is gold," said Adam Klopfenstein, a trader and senior market strategist at Lind-Waldock in Chicago.
"Gold is going to be the reserve currency of choice until the next shoe drops" in Europe, he added. Fears that Europe's potential debt crisis boiled over this week, and gold futures have gained 2.5% since last Friday.
The SPDR Gold Trust (GLD 118.37, +0.10, +0.09%) , the largest exchange-traded fund backed by gold, lost 0.1%. Assets held by the ETF jumped 19.78 metric tons (21.80 short tons), the most since February 2009, to 1,185.79 metric tons (1,307.10 short tons) on Thursday, a record high for the fund.
Trading became choppy in midday trading as some investors had to cover their positions in stocks and other investments that were going south by selling their gold positions, Klopfenstein said.
Silver rode in the coattails of gold, jumping 5.3% as some investors turned to the metal feeling gold was a bit too expensive for them, he added.
"Fear is the thing driving gold," said Darin Newsom, senior analyst at Telvent DTN in Omaha. People realize that Europe could bring the economic recovery to its knees, he added. "Everything is linked, we cannot say the ocean protects us."
(Excerpt) Read more at marketwatch.com ...
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Goldbug ping
Anybody have an idea what happened around noon? That’s when gold and silver really jumped. Has anybody ever seen silver jump a buck in an hour?
I see that USDX jumped at exactly the same time, so it’s not the old negative correlation routine. Somebody turned the machines back on for the Duke brothers?
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I know. I think they are trying to get Gold and Silver and any thing else that is not fiat currency. I heard someplace that the NWO international currency will be based on the Gold Standard. It will come in after the coming collapse.
Yes, and the jump was associated with some guy named Hunt.
I was rummaging around for some old silver charts and I can’t find any daily charts from the period. I know it collapsed in like a week, but its rise was over a period of many months. I think a buck in one hour at that time (i.e. price) would have been enough for them to blow the whistle right then and there.
Thanks for the ping.
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Jiggyboy has a very interting ping list.
Here we go, Karl Denninger thinks it has something to do with a CTFC paper on position limits coming out:
http://jessescrossroadscafe.blogspot.com/2010/05/silver-breaks-above-18-in-swift-move.html
THanks for the ping! We use copper in large quantities here; I’m off to check other commodities.
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