US Credit Rating: Who Will be the First to Downgrade?

During World War II, there was a saying, that, “loose lips, sink ships”… I think Greek Prime Minister, George Papandreou, should have taken those words to heart yesterday… You see, the currencies, led by the beleaguered euro (EUR), were rallying, and the single unit was nearing 1.37, when Papandreou made a statement that sunk the rally’s ship… He said, “Greece’s debt problems could soon spread to the rest of Europe and mean a weaker euro”

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88% Scientifically Accurate Predictor of Gold Value

Predicting the price of gold in the future has always been more art than science. Stocks, bonds, and other investments are generally valued based on their future cash flows, an attribute that gold simply doesn’t have. In fact, beyond taking note of macroeconomic principles and using historical trends as a guide there are few agreed upon techniques for understanding gold’s price movement.

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IMF Sends Gold to the Woodshed

Front and center this morning, we had the entire day-and-a-half rally in the risk assets completely erased, wiped out, and reversed yesterday… Recall that I told you in the morning that the euro (EUR) had lost about 1/4-cent while I was writing… Well, it held to near 1.37 until about mid morning, and then the trap door was sprung, and the euro went falling through the 1.37, and 1.36 floors!

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Gold Bull Market – Stage 2

Don’t be scared off by last week’s sell-off in gold, says Byron King. “What got sold? Do you really think that people parted with their Gold Eagles, Maple Leafs and Krugerrands? Did YOU sell YOUR gold? Do you think that the Chinese sold gold from their national vaults?

“No, last week people sold paper, not real goods. Sure, it felt like a sell-off to your portfolio, when gold miners declined. But beware thinking that we’re about to experience the Great Reversal in values for precious metals.

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Germany Weighs Possible Bailout of Greece

There are rumors going ’round that, 1. There is a secret central bank meeting going on, and 2. That Germany is weighing bailout possibilities for Greece…

The latter really lit a fire under the risk assets yesterday, allowing stocks, currencies and commodities to enjoy a day in the sun, away from the shade the dollar was casting on the risk assets. Stocks turned around and had a strong showing for the day, gold was up $15, and currencies, led by the Brazilian real (BRL) gained back some precious ground versus the dollar. I know that sounded a little strange saying, “led by the Brazilian real” as I normally associate the currencies being “led by the euro”…

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Gold Could See Exceptional Gain if China Bubble Bursts

As The Daily Reckoning has discussed before, there is great division on whether or not China’s in a bubble. In a guest post on Zero Hedge, Gary Jeffery argues not only that China is in a bubble, but that upon its bursting a fairly outlandish series of events will take place and lead to the price of gold skyrocketing.

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Are Fundamentals Creeping Back to the Currencies?

Well, day two of 2010 was another sign that the fundamentals just might be creeping back into the markets… There was a piece of data that was a good sign for the US and the dollar got bought… Now… Was that so difficult to do? That’s the way it’s supposed to work!

The piece of data? Oh, you probably heard all about it, as the talking heads on cable news were all smiles and giggles over this one… Pending home sales plunged a seasonally adjusted 16% in November as a highly popular tax credit for first-time buyers was set to expire on November 30, according to the National Association of Realtors. Of course we knew that it would take government intervention to help… Isn’t that what the government wants to hear from us? That we can’t go on without them intervening in our lives and the public and the markets?

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US Companies to Repatriate Profits?

Before I left on vacation, I shipped out with the thought that I was getting too stressed out over all this ridiculous deficit spending and so on… But, several readers reminded me that “venting” was good for me! HA! So… I’ll get back to beating the drum for an end to deficit spending, and a repeal of 1913…

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Gold Price Past US$1,150

LONDON - The price of gold soared past US$1,150 per ounce here on Wednesday for the first time in history, buoyed by the weak US currency and central bank purchases of the precious metal, analysts said. In afternoon trade on the London Bullion Market, gold jumped to a record high US$1,152.85 per ounce after forging a series of all-time peaks in recent weeks. (more...)

Gold Outpacing All Currencies

Gold Continues to Gain Against All Currencies THE PRICE OF GOLD rose to fresh record highs against the US Dollar for the fifth session in six in early London dealing on Wednesday, recording an AM Gold Fix above $1114 an ounce. Up by more than 28% for 2009 to date for US investors, gold also rose against all other currencies, breaking its best level against the Japanese Yen since July 2008 above ¥3220 per gram as world stock markets gained, government bonds held steady, and crude oil ticked higher from $79 per barrel. Gold also broke new 8-month highs above €743 and CHF 1121 an ounce for Eurozone and Swiss investors, trading 6% and 4.5% respectively off February's all-time record peaks. (more...)

Gold Hits $1105… Still More Upside

Gold hits record above $1,105 and analysts still predicting more upside SINGAPORE (Reuters) - Gold powered to another record high on Monday on safe-haven buying as the U.S. dollar slipped and after a weaker-than-expected U.S. unemployment rate revived worries about the health of the global economy. Gold has gained more than 25% in 2009, driven by persistent weakness in the U.S. currency that has lost more than 6% versus the euro so far this year, and recently by the failure of a meeting of the Group of 20 finance officials to talk more specifically about the dollar's decline.. As expectations rise that central banks across the globe might look to buy gold to diversify their reserves, analysts say that there could be more upside for the precious metal. (more...)

Beijing Insider: China “Can’t Buy Enough Gold”

Gold "Targets $1100" as Beijing Insider Says China "Can't Buy Enough Gold" London Gold Market Report The price of gold in wholesale 400-ounce form held steady Thursday morning in London as world stock markets slipped. Trading near $1090 and €735 an ounce for US and Eurozone investors, gold was up 4.3% and 3.5% respectively for the week so far. Crude oil crept back above $80 per barrel. The US Dollar slipped on the forex market as the European Central Bank and Bank of England kept their key interest rate on hold at record lows. (more...)