Gold prices surge to a 28-year high on the back of strong crude oil prices and a weakening dollar

[BAK]

Today the price of an ounce of gold at NYSE closed at $824.30.
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The combination of strong crude oil prices and a weakening dollar boosted gold prices to a fresh 28-year high of $824.3 an ounce, just below its all-time high of $850 reached in January 1980.

Precious metals traders said investors were adding to their gold positions – no one was selling. David Holmes, head of precious metals at Dresdner Kleinwort in London, said a rise to $850 was “very much on the cards”.

John Reade, head of metals strategy at UBS in London, upgraded its one-month gold forecast to an “inevitable” $850 an ounce.

The dollar fell to a record low against the euro of $1.4571 as investors bet that the US Federal Reserve would further cut interest rates to prop up the economy hit now by a second wave of credit turmoil.

 

[Koba]

...dollar is dead guys,oil almost 100$ sitashangaa kuona Bush akivamia iran soon

 

[Hume]

What does this increase of gold has 2 do with our economy,
Rich in gold but poor in benefits from it, what the hell!!!!

 

[Mtanganyika]

This is what we call market psychology, at this time the dollar is all the time low, gas price is at the roof, credit crunch and sub-prime loan crisis people are tend to fear to invest their money in anything which have any risk.

So alternative is buy gold, why? because gold does not depreciate, and it does not be eaten by inflation at all.The merrh Lynich and Citigroup mess left stock market at the mess, so gold is all altenative for older investors. It will cool off.

 

[Mtanganyika]

...dollar is dead guys,oil almost 100$ sitashangaa kuona Bush akivamia iran soon

Dollar is not dead, oil price to trade at $100 has nothing to do with dollar though, the demand of oil increase, while OPEC maintain constant supply.

Dollar will stay lower for a while, because Fed is afraid recession, so they can't reduce the money supply in the market, that's why Ben Banneck cut more the rate last week. This will increase more supply of money, and Bank will provide more loans and economy will bell it self out from recession. That is the only point behind, US fed can increase the value of dollar by reduce money supply, but that will hurt US economy at this time of sub-prime loan mess, credit crunch and high oil price.

 

[BAK]

What does this increase of gold has 2 do with our economy,
Rich in gold but poor in benefits from it, what the hell!!!!

When Barrick signed those contracts with our govt, the price of gold as shown in those contracts was $238 and right now the price has increase almost 4 times! Tanzania gets nothing out of this price increase while Barrick and their shareholders are laughing all the way to the BANK! Upo hapo! au bado unashangaashangaa

 

[Dua]

Mikataba tuliyoingia ni mibovu na mwenye uwezo wa kuitengua ni rais, ni afadhali tuingie hiyo hasara hivi sasa kuliko kungojea yatakayotokea baadaye kwani hivi sasa tunaambulia almost 0%.

Mikataba ingekuwa mizuri hata bei ingepanda kiasi gani tutaendelea kuvuna % tuliyokubaliana. swala la muhimu hivi sasa ni kuona keki hii ya taifa inaliwa na wote sio wachache peke yao.

 

[Koba]

Dollar is not dead, oil price to trade at $100 has nothing to do with dollar though, the demand of oil increase, while OPEC maintain constant supply.

Dollar will stay lower for a while, because Fed is afraid recession, so they can't reduce the money supply in the market, that's why Ben Banneck cut more the rate last week. This will increase more supply of money, and Bank will provide more loans and economy will bell it self out from recession. That is the only point behind, US fed can increase the value of dollar by reduce money supply, but that will hurt US economy at this time of sub-prime loan mess, credit crunch and high oil price.

....vita inaendeshwa kwa credit cards za wachina & Saudi Arabia unategemea nini? hii nchi haina tofauti na wananchi wake imagine mtu ana nyumba malibu ya dola milioni huku mshahara wake less than 50000,madeni yatairudisha hii nchi kwenye stone age,just wait for Chinese to start selling the first couple of hundred billions out of the $1.4T,utanunua mafuta dola mia tatu....and you have to know weakness ya dollar ni one of the reason mafuta kupanda,siku zote hivi vitu vitatu (Gold,Oil,dollar) vinaenda pamoja) ingawaje weakness ya dollar this time imeanzia kwenye sub prime loans lakini effect yake ndio kwenye oil ambayo inafanya nchi kama zetu zinaumia

 

[Idimi]

What does this increase of gold has 2 do with our economy,
Rich in gold but poor in benefits from it, what the hell!!!!

Hume, dhahabu ndio mhimili wa benki nyingi hapa duniani, inatumika kama ngao iwapo uchumi unayumba yumba. Nadhani wachumi watakufafanulia vyema hapa JF

 

[Mtanganyika]

....vita inaendeshwa kwa credit cards za wachina & Saudi Arabia unategemea nini? hii nchi haina tofauti na wananchi wake imagine mtu ana nyumba malibu ya dola milioni huku mshahara wake less than 50000,madeni yatairudisha hii nchi kwenye stone age,just wait for Chinese to start selling the first couple of hundred billions out of the $1.4T,utanunua mafuta dola mia tatu....and you have to know weakness ya dollar ni one of the reason mafuta kupanda,siku zote hivi vitu vitatu (Gold,Oil,dollar) vinaenda pamoja) ingawaje weakness ya dollar this time imeanzia kwenye sub prime loans lakini effect yake ndio kwenye oil ambayo inafanya nchi kama zetu zinaumia

I think a dollar weaker has nothing to do with China, what i believe is over consumption of Bush administratation has effect on the dollar strength. However, collapse of sub-prime loan as contribute in large parcentage, because Fed cut the rate down to increase liquidity on capital and money market.

US people consumption is not change that much, 80% of the people are living pay check to pay check, which is like 5% more than few years ago. On the China side people are saving 50% of their gross income, this means this two countries have different consumptions, but China depends on US economy.

Dollar is low, but not all the time low. Dollar is not lower even closer to 1970's.China the holding US T-bonds and T-bills and they affraid if dollar will keep go down their asset will worth nothing. However China can decide not save their money in dollar any more and move to euro, this will be bad for US that why Ben Banneck was testify to the senate today.

Oil price soar because of Supply and demand, oil is traded in Euro now days. But demand of oil increase due to emerging economy of China and far east, while OPEC still manipulate the supply. I have bodies in Energy trade business and what they expect is US will release it reserv on december to increase suplly and it will cool the price off.

Will US economy go to recession? that is the question that majority of economist have in their mind. No dought that iflation will hike up, because of too many green out their, but will it be over 2%? How about interest rate will they increase? what i know for sure credit tighten will increase, and probaly the magic number of 65% of people own home will drop in recent years. I believe the main topic on 2008 you decide will be economy