Gold sprints to a new high

[girl gone mad]

http://www.business-standard.com/india/news/gold-sprints-tonew-high/442768

Gold continued its upward spiral to set new records at $1,593 an oz in London today, buoyed by a sharp drop in the dollar after global credit rating firm Moody’s warned the US may lose its top credit rating, the possibility of more stimulus by the Federal Reserve and Europe’s worsening debt crisis.

The yellow metal started its journey from yesterday’s close of $1,582.38 an oz. Sustained investor interest in gold as an avenue for hedging against the global economic crisis boosted the sentiment to set a new record. A couple of months before, GFMS Ltd, a London-based independent advisory firm, had forecast gold to hit $1,600 an oz during the current calendar year. This translated into the Indian market at a record of a little over Rs 23,000 per 10g.

Amid indications of another stimulus package by the US Federal Reserve, Moody’s has warned the country’s rating would be downgraded if Washington pumped fresh funds into the system to protect from a possible slowdown. Uncertainty around US budget and debt negotiations in its legislature, together with Federal Reserve chairman Ben Bernanke’s comment on the potential for further monetary easing, battered the dollar, helping support commodities. Consequently, the euro erased early gains to stand flat at $1.4191. Today, the dollar fell 0.2 per cent against a basket of currencies.

[pscot]

1. go Gold!

[Art_from_Ark]

2. You know things are really messed up when

a single company can apparently wield so much influence over the economies of sovereign nations.

[Po_d Mainiac]

3. Since the Big 3 rating agencies have been

just a tad slow with their revisions (I think The Bear and IndyMac are still AAA), I'm 'shocked and surprised' that anyone even bothers to report on their announcements.

Notice should have been sent as soon as CONgress exibited a willingness to spend, but not raise sufficient revenues to do so, how many decades ago?