Gold Hits $700; Highest Level Since 1980

[rusty_parts2001]

Gold prices surged to a new quarter-century high of $700 an ounce Tuesday as funds bought into the market, driven by tension between the United States and Iran and expectations of a pause in interest rate hikes.

Iran's president wrote in a letter to President Bush that democracy had failed worldwide and lamented ''an ever-increasing global hatred'' of the U.S. government. Secretary of State Condoleezza Rice rejected the letter Tuesday, saying it didn't resolve questions about the country's nuclear program.

Analysts at TheBullionDesk.com said Washington's dismissal of Iran's letter gave way to the gold rally, noting that it appears that tension with Iran will likely rise again, and also that the dollar will stay under pressure. A weakening dollar typically encourages investors to instead turn to gold, considered a safer alternative to the U.S. currency.http://www.nytimes.com/aponline/business/AP-Gold-Prices.html

[arcane1]

1. making quite a few evil people very happy

Poppy Bush was invested in gold-mining, wasn't he?

[ret5hd]

10. Making quite a few evil people VERY unhappy also...

Look into who's "short" gold (by a WHOLE lot). Names like Solomon Brothers, Goldman Sachs, etc etc. And now they are having to cover their "shorts" or face even greater losses. Same goes for silver.

The USD is falling like a rock (looks like Buffet was right, but his timing was a little off). Commodities flying high. Looks like a depression is around the corner, IMHO. So there are quite a few good people unhappy also.

[xxqqqzme]

2. Hartmann - this AM, was ticking off

the percentage rise in ALL commodities. Copper, silver & platinum have had the largest percentage rise since 2001.

[TrogL]

3. Dollar hits 91¢ US as gold reaches $700 US an ounce (Canada)

http://www.cbc.ca/story/business/national/2006/05/09/gold.html

Rising gold and oil prices helped the Canadian dollar gain more than a cent against its U.S. counterpart in Tuesday trading, boosting it to a 28-year high.

The loonie was quoted at 91.00 cents US at 11:10 a.m. EDT, up 1.13 cents from Monday's close. That was the dollar's highest level since Jan. 16, 1978, according to the Bank of Canada.

The dollar was propelled by rising gold and oil prices. Gold futures hit $700 US an ounce in New York trading Tuesday – the highest level for the precious metal in more than 25 years. That was up more than $20 US from Monday's close.

Click the link for the longer explanation.

The loonie's still climbing.

[marmar]

4. How long before the bottom drops out...

The American economy is on borrowed time (and money).

[AndrewJacksonFaction]

5. Shhhhhhhh. Economy is roaring. downhill.

[lebkuchen]

6. As gold rises, Bush's poll #s sink

which means gold should be rising to $800+ very soon. Time to invest.

[mumon]

7. Why is George W. Bush's base like a Candadian dollar

both are loonies.

[AX10]

8. The Bush economy is BOOMING and ROLLING along....

down a steep hill onto a ground covered with hard rocks. :-(

[Bozita]

9. Here's the NYT story on today's gold ...

http://www.nytimes.com/2006/05/09/business/09cnd-gold.html?hp&ex=1147233600&en=99f1b7b7bc4ff903&ei=5094&partner=homepage

Price of Gold Surges to New Height


By VIKAS BAJAJ
Published: May 9, 2006

Prices for gold, platinum and other precious metals surged to new heights today as investors weighed an assortment of worries about geopolitics and energy and sought to claim a piece of the exuberant rally in commodity prices.

Gold futures, which have risen 36 percent so far this year, jumped 3 percent, to $708.3 per troy ounce, and platinum rose 3.4 percent, to $1,235.50 per ounce. Prices for crude oil, which metals prices are said to track, for June delivery rose $1.03, or 1.5 percent, to $70.80 a barrel on the New York Mercantile Exchange.

No single factor seems to be triggering the latest jump, but gold, traditionally seen as a hedge against inflation and rising energy prices, appears to be enjoying a run that is attracting other investors who are eager to get in on the action, analysts said.

"The way these things work is solid returns tend to build on themselves, and they don't slow down until they breakdown," said Daniel C. Pierce, a portfolio manager at State Street Global Advisors.

more...