Gold Soars
Sorry for the early closing of economyguy today, but I have to get up early and face an Italian pilot flying Alitalia.
Stocks went sideways today again, as did bonds, as did the Dollar, as did oil, as did gasoline.
Gold, on the other hand, SOARED today as it did yesterday. Hurrah. Breaking those topside resistance levels has paid off handsomely. As of this writing, Gold sits at $998 per ounce –just under $1000. Will it go through that barrier?? Yes, is the answer, but when is impossible to state – maybe as soon as today, maybe in a month, etc. Hurrah for GOLD.
In the news today…..
Jobless Claims – were 570,000 last week, and this disappointment the market as it was higher than expected. Everyone thinks that unemployment is going to start going down, and people will stop being laid off – hooey, I say.
Retail Sales – didn’t rise in August like the market expected. It looks like people didn’t go out and buy those “back to school” things that were hyped so much. They concentrated on necessities. Teen related sales were off. It is projected that when the final numbers come in, August same store sales will be down.
Europe – since I am in Europe, I will give you what I see happening over here. The European Central Bank kept their key interest rate at the lowest it has been – 1%, even though they sense signs of a recovery. The Germans are insisting on clawing back those “Stimulus” packages that Europeans have started spending. The Germans want the spending stopped, and the future deficits reduced in that manner. (I wonder if there is something to be learned here by the US? Since it is so hard for you or me to see any benefit from Obama’s Stimulus Package, why not just stop its spending?)
Here are the last numbers for today (about 40 min before closing):
Dow Jones 30 Industrial – 9293 (up 13 points)
10 Year Treasury Bond – 3.33% (up 0.03%)
Euro – $1.4251
Gold – $998 (up $19)
Oil – $67.93 (down $0.09)
Gasoline – $1.79 (down $0.02)
