Oil has reached a new high today of $73 p/barrel (June contract) and Gold has climbed to $623 p/oz. I think the up-trend will continue, as the travel season is just about to start, possible distruptions with this years' hurricane season and Bush increasily making everyone nervous with comments towards Iran , as well as the Iraq situation not improving and China & India increasing their consumption of oil. Add the fact that the housing market looks to be running out of steam, domestic spending will no doubt slow down as fuel costs climb, the currency will continue to be under pressure, the safe haven for now, is Gold.
17th April 06:-
Gold prices rose over 3 percent today on concern that growing tension over Iran's nuclear ambitions may disrupt oil supplies.Crude-oil prices reached $70 a barrel for the first time since Hurricane Katrina, with investors fearing rising inflation. Spot gold closed up $18.20 to $614.50/oz., while silver rose almost 4 percent on hopes the first silver exchange-traded fund with soon launch.
Concerns about oil supply disruptions in Nigeria also contributed to the rise in crude prices.
Federal Reserve Bank President Richard Fisher admitted Friday that the U.S. dollar is a "faith-based currency" dependent on the credibility of a central bank. "In addition to a faith-based currency, we are the currency of the world and we must maintain its integrity," he said. Commented Craig R. Smith, CEO of Swiss America: "The rise of gold prices signals a loss of confidence in all 'faith-based' currencies worldwide. We're witnessing an amazing transfer of wealth from West to Mid-east. OPEC is raking in historically high profits, turning petrodollars into gold and divesting of U.S. dollars in the process. In my view, we're only one major oil-terrorism-economic crisis away from $100 oil, $5 gas and $1,000 gold."
1 comment:
4/21 - Oil is now over $75 and Gold at $635.25
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