Friday, March 14, 2008

Quo Vadis, Part II

Source: Kitco

"Overnight conditions in the gold market remained buoyant, with the metal being able to maintain above $990 per ounce although a few signs of potential slippage were seen in the small declines in oil and mild rise in the dollar. Equities fell in Japan, the Nikkei losing nearly 200 points as worries of a strong yen impacting the country's exporters manifested themselves once again. Speculation about possible government intervention in the currency markets is becoming the topic du jour in trading rooms across Japan and Europe. The dollar was indicated at 72.12 on the index and oil just under $110 per barrel..."

"...The credit problem continues to be prime driver of the flight to safety and of the speculative mania exhibited by funds. The latter has pushed various commodity markets into states of distress. It has been at the center of the latest vertical line on the gold charts. We asked the question yesterday as to where we are going next. We received e-mails exclaiming: $2,000! Let's see what some long-time market observers have to say. Our good friend, Paul Walker from the GFMS research firm in London, was recently quoted as saying:

"Tell me when all the bad U.S. news is going to be out of the market and I'll tell you when the turning point for gold is coming," said Paul Walker, chief executive of London-based GFMS. "It's very difficult to know..."

No comments: