Spot gold correction starts after making another record high
The day high is USD $685, then gold starts a slight correction along with all other commodities: copper, platinum, sugar all drop slightly, except crude oil has a bigger decline due to news "Iran said it sent a letter to President Bush offering what it said were new ways to resolve the standoff over its nuclear program" help ease trader's worry to oil supply. oil sank $1.29 to $68.90 in the US morning session.
Recently gold is most sensitive to USD. Dollars rebounds after a serious oversold, and gold reacts quickly. Gold dropped $9 from its high to $676. Correction is very slight compared to its recent level of rise. USD is obviously still in the beginning of its downtrend. EUR will hopefully reach 1.3 in a short while. Gold would probably have broken $700 at that moment.
While some people said Gold is very expensive now, the history highest price is $850 in 1980. Taken the inflation factor, gold should weight over USD$2000 in 2006. Also compared with other commodities, it is the most valuable metal with most supporting reason for its sky-high price.
Recently gold is most sensitive to USD. Dollars rebounds after a serious oversold, and gold reacts quickly. Gold dropped $9 from its high to $676. Correction is very slight compared to its recent level of rise. USD is obviously still in the beginning of its downtrend. EUR will hopefully reach 1.3 in a short while. Gold would probably have broken $700 at that moment.
While some people said Gold is very expensive now, the history highest price is $850 in 1980. Taken the inflation factor, gold should weight over USD$2000 in 2006. Also compared with other commodities, it is the most valuable metal with most supporting reason for its sky-high price.
posted by SSY | 7:50 AM
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