Jon Nadler
Jon Nadler
dent dollar early fell gold increases oil prices recovering slightly
Increases in oil inventories and a firmer dollar put a dent into gold prices early Tuesday. Gold fell about 1% before recovering slightly and stabilizing.
arena desirable dollars investors metals precious retail returned
Diversifying away from dollars has become desirable -- retail investors returned to the precious metals arena in droves this week.
apparent diversion dollar gold last pattern profits repeat run sinking traders visible watching
Traders were watching a sinking dollar and the apparent diversion of petro-dollar profits into bullion (a repeat of the pattern that was last visible in the gold run of 1980).
attempt attract debt designed dollar hikes inflation investment
The hikes are not as much an attempt to stave off inflation as they are designed to attract investment into the dollar by would-be debt holders (China, Japan, etc.) of the U.S. currency.
convince dollar few funds gold hit next park safer took traders
The dollar took enough of a hit to convince traders that gold was a safer place to park funds in for the next few sessions.
acting collective continue global gold news ominous stories
In a world where news stories continue to make ominous ripples, gold is acting like the thermometer of collective global anxiety.
impact
That's a pretty big impact on the drivers.
either gold hikes increases market meaningful move rate sequence sharp
It will take either a sharp sequence of rate increases ... or a significant reversal of rate hikes ... to move the gold market in a meaningful way at this point.
buy rumor sell
They did buy the rumor and sell (or not buy further) on the fact.
appears couple digest economic higher lower market realities remains room trading visits
While there still remains some room for a couple of visits on the lower end of the trading range, the market appears to digest geopolitical and economic realities with the same, predictable outcome: higher prices.
aside coming community corners economic globe investment items looking news smile
Aside from the amalgam of worrisome news items coming from many corners of the globe ... the investment community is also looking with apprehension at economic news and has nothing to smile about.
afraid current forecasts future gold longer number raised word year
A number of respectable institutions raised their current year and 2007 forecasts for gold and more of them are no longer afraid of mentioning the word 'record' when it comes to future gold prices.
attributes gold last news nigerian oil sabotage since weaker
Buoyed by the Nigerian oil sabotage news and a weaker U.S. dollar, gold has reasserted its safe-haven attributes since last Friday.
assertion critical difference fed funds gold percent quarter rate stand
We stand by the assertion that a quarter percent better fed funds rate will NOT make the critical difference to medium-term and/or long-term gold investors.