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Gold hits all time high today(dollar closed lower)


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Nothing to see here folks, recovery is happening! Remember the Dow was at a all time high 2 month's before the recession stopped.

 

Gold hits record $1,045 on report of dollar's demise

Australia rate hike, also pressures dollar; silver jumps 4.6%

 

http://www.marke****ch.com/story/gold-hits-record-high-as-dollar-slumps-2009-10-06

 

EDIT: Why won't the link post?

 

By Nick Godt, Marke****ch

 

NEW YORK (Marke****ch) -- Gold finished at a new record closing level on Tuesday, after earlier hitting a record intraday high of $1,045 an ounce, as the dollar slumped on a report suggesting the end of dollar-based oil trading and as Australia hiked interest rates.

 

A report in the U.K.'s Independent newspaper said that Gulf-area oil producers, along with China, Russia, Japan and France, are planning to eventually end dollar-based oil pricing.

Gold hits record high

 

With the greenback under selling pressure, investors moved into dollar-denominated commodities such as gold.

 

Gold for December delivery gained $21.90, or 2.2%, to end at $1,039.70 an ounce, a new record closing level. It earlier reached a high of $1,045.0 an ounce, topping the previous record of $1,033.90 in March 2008.

 

Gold's new high is "very significant," says Brien Lundin, editor of the Gold Newsletter, published by Jefferson Financial. "Reaching $1,100 by the end of the year is now a conservative estimate."

 

The dollar index /quotes/comstock/11j!i:dxy0 (DXY 76.29, -0.35, -0.46%) , a measure of the greenback against a trade-weighted basket of currencies, fell to 76.318 from 76.668 in late trading Monday. See Currencies.

 

The report carried in the Independent newspaper was denied by top finance officials, giving the dollar a small, but temporary, lift earlier. See full story.

 

"There's no telling the veracity of these reports, but the general trend has been going in this direction anyway: a weaker dollar and rising gold," Lundin said.

 

According to Peter Spina, chief investment analyst at GoldSeek.com, trading gold and other currencies in exchange for oil would "establish gold as a recognized medium of exchange, returning it a step closer to its role as money on a world trade system." See full story.

 

The report and dollar weakness also fueled gains in crude-oil futures, which topped $71 a barrel by the official close of gold trading. See Futures Movers.

 

Rising crude prices tend to lift gold, which is often used as a hedge against potential inflation.

 

Also pressuring the dollar, the Reserve Bank of Australia boosted its cash rate by a quarter of a percentage point to 3.25%, marking the first hike since March 2008. It follows an aggressive reduction of a total of 4.25 percentage points starting in September 2008. See full story on Australian rate hike.

 

The SPDR Gold Trust /quotes/comstock/13*!gld/quotes/nls/gld (GLD 102.27, -0.01, -0.01%) , the biggest gold exchange-traded fund, gained 2.5%. Among other metals, silver for December delivery jumped 76.5 cents, or 4.6%, to end at $17.30 an ounce. Copper for December delivery rose 2.2% to $2.78 a pound.

 

October platinum gained $23.50, or 1.8%, to $1,318.10 an ounce, and December palladium rose $7, or 2.2%, to $310.30 an ounce.

 

On the S&P 500 /quotes/comstock/21z!i1:in\x (SPX 1,055, +14.26, +1.37%) , miners rallied, with shares of Newmont Mining /quotes/comstock/13*!nem/quotes/nls/nem (NEM 46.20, -0.01, -0.02%) up 7%, Alcoa Inc. /quotes/comstock/13*!aa/quotes/nls/aa (AA 13.94, +0.05, +0.36%) up 3.5% and Freeport-McMoRan Copper & Gold /quotes/comstock/13*!fcx/quotes/nls/fcx (FCX 69.65, +0.04, +0.06%) up 3.4%.

 

Nick Godt is Marke****ch's markets editor, based in New York.

 

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tw@trocket.

 

Anyway, if you read the War Street Journal lately, you'll see a clear bias in how the price of gold is reported. They keep quoting people who say it's overvalued and warn that it could collapse.

 

I'm not saying this won't happen (after all, the government would love nothing more than to frighten libertarians who invested in gold), but gold is one of the best bets you can make today.

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