Tag Archives: iran

Gold closed down on Friday at $1612.25, indicating a full correction may be in effect. President Obama’s State of the Union Address did very little to change the market realities, resulting in sideways motion for silver, down to $30.18, now walking independent of gold. With the dollar strengthening and Europe indicating that it may have a fix in the works for Greece and Spain, risk-seeking investors who have traditionally favored gold ETFs are looking elsewhere, trying to find big returns in more volatile markets. Ironically, because these folks were so stocked up on paper gold, the net effect on the price was stunning, with the yellow metal recording as much as a 5% decline at one point during the week. The source of all hoopla was two whales dumping their positions in search of action in Europe. George Soros sold 55% of his positions while Louie Moore Bacon relinquished every single gold share in his portfolio. Meanwhile, physical gold holders and those long on the yellow metal will swoop in early this week to score some real deals. With the week in the U.S. potentially off to a slow start due to the President’s Day holiday, this may be just the time to get in; the bulls look poised to take off again.

Gold defied the experts last week, closing up on Friday at $1669. Following suit – that is, defying the experts – silver closed down at $31.43. With better than expected job reports in the U.S. and Britain, despite both economies being under duress, financial analysts were left scratching their heads. The culprit is quantitative easing, which is impacting not only the price of precious metals, but also the value of the economies’ currencies. Additionally, Iran’s gold-for-oil-and-gas-program is creating very tense nerves in Turkey (even as that country makes use of the program), due to international sanctions against trade with Iran. And even Korea and Ghana have recently found themselves drawn into this epic cat and mouse game. There are also increasing signs that gold is acting more and more like a currency across the world; India’s decision to not only tax gold, but also create a secondary market for its paper trade is certain to be met with smuggling, and potentially, an economic collapse. Gold, not paper currencies, are bolstering developing nations’ economies. With so much gold walking back and forth across borders in satchels and pockets, is it any wonder that security experts are on pins and needles?

Gold tacked left this week, then right as it looked for its footing amid a series of pre-ordered trades. What was the trip wire? Failure of US monetary policy makers to step away from the fiscal cliff’s edge, mingled with very jittery bets. While gold closed Friday at $1726.00, making up much of its large slide from Wednesday, it remains to be seen if the bears or bulls have it. Major forecasters are quite bullish as they count the many ways that portfolios must diversify, with gold being a major piece of the program. Silver rose a respectable 2.6%, closing at $34.28. The Euro looks strong next to the weak-kneed dollar, but now Germany is considering bailing on the union while the UK looks like it may be the next domino to fall across the pond. In the midst of all of that, investors are clamoring for physical gold, and India is seeing the highest prices for physical gold ever. So calm those nerves. The bulls appear to have it.

Although it was a short week for the markets here in the US, you wouldn’t know it judging by the news. The cease-fire in Gaza ensured that many would not have indigestion while eating their holiday turkey. However, the devil is in the details and the market responded appropriately with gold closing up at $1734.50 and silver up by 3.5% to close at $33.41, no doubt due to Iran’s and Japan’s sudden infatuation with the white metal. Meanwhile, the greenback shed significant value, indicating that moves from the Eurozone to stabilize Greece could bode ill for the dollar standard. (Are we closer than we know to a gold standard?) If the US slips into a “Japanification” of its economy, gold bulls could well come out on top.