Gold hit record highs Tuesday to settle above $1,271 an ounce, as the U.S. dollar declined broadly after upbeat data failed to convince investors to shift into risk-linked assets.
Gold is now on course for a 15 percent gain in 2010, fueled largely by investor nervousness stemming from the fallout of the euro zone debt crisis and from economic data that has suggested global economic growth may be losing momentum.
"May" be losing momentum? Nice. People are starting to hedge their bets big time. Gold jumped almost $30 an ounce today on an idle Tuesday. The next Fed meeting is next week. If the Fed is going to announce it will start buying securities in earnest then, all bets are off.
At this point we're just waiting for the trigger that will plunge us right back into September 2008.
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