Monday, February 23, 2009

Striking $1000/ounce

Gold Friday hit $1000 an ounce then bounced down, but today (Monday) it continues to reach up. Both technical and psychological observers are standing fast, as they await any news that will help sustain this price.


Tuesday, January 20, 2009

Congratulation Mr. Obama

Mr. Obama was greeted on Inauguration Day with the likely fall of another national bank, Citibank. If it fails before the week's end, this could be it.

Currently, Citibank, aka Citigroup, sits at about $3 per share. This makes it an FDIC take over target. Next inline could be Bank of America, its common stock shares have also been beaten down. What the market traders at this point want is transparency - and be damm with the pain. Because whatever happens, if it does not happen soon, even market traders will be looking for day jobs.

In the meantime, food cost has fallen heavily, by as much as 25%. This more than anything else is a result of the fallen fuel prices. But most recently the price of oil has risen, mostly to reflect to true cost of oil.

Even so, the T-Bills (Federal Treasure Bonds) remain the safe haven of choice. This gives the US Dollar the marked advantage in trading, but could falter quickly, if market see any stability or profit anywhere else. Along this measure, gold has been stead fast in holding its value.