Gold Confirms Currency Hedge Status

Gold: China has requested that a new global currency be discussed at next week's Group of Eight meeting in Italy. The news sent the dollar into a downward spiral and the price of gold rallied above $940, confirming its status as a currency hedge. The dollar has strengthened slightly today resulting in a small drop off in the gold price to $926.70. China has been pushing this agenda for some time now and while the dollar is unlikely to lose its reserve currency status anytime soon – uncertainty regarding the international monetary system should result in gold remaining in strong demand.

Silver: Silver has reacted to today's dollar strength as well, dropping to £13.31.

Platinum Group Metals: Platinum peaked briefly above $1,200 before slipping back to $1,180, palladium is holding strong at $250 and rhodium has dropped back to $1,310/$1,410.

Disclosure: No positions

Comments

[Roger Knights:]

Maybe China recognizes that what it's asking for--a new currency--is unlikely to be granted. So maybe what it's looking for is an explicit rejection, so that it can buy lots of gold with "clean hands," as a responsible member of the international community. I.e., it didn't act without asking first.

Jul 02 11:41 AM

[Whippet:]

I think you nailed it. The only thing that pisses off the USSA Kommissar of the Treasury and Federal Reserve Czar more than verbal barbs at dollar hegemony is the out and out purchase of gold by central banks. All at the same time Turbo Tax Timmy just convinced Congress to sign off on a massive IMF gold dump...


On Jul 02 11:41 AM Roger Knights wrote:

> Maybe China recognizes that what it's asking for--a new currency--is
> unlikely to be granted. So maybe what it's looking for is an explicit
> rejection, so that it can buy lots of gold with "clean hands," as
> a responsible member of the international community. I.e., it didn't
> act without asking first.

Jul 02 12:20 PM

[one eye:]

There is no doubt in my mind that you are operating with one oar.

Gold went Up, Gold went Down the same amount. The USD went Down, The USD went up the same amount. Silver at 13 Pounds has not been seen for over a YEAR.

The IMF is Selling IMF Bonds Not IMF Gold which is why Gold rallied.

China has announced it will not be discussing te USD, please continue making up data as you go along. You have entered the "twilight" Zone.

Jul 02 02:22 PM

[one eye:]

Of course, Gold is a good buy. But not for anything said in the Article.

Jul 02 10:02 PM

[paxjds:]

Buy gold and take possession to counter the "shorts" manipulation. Buy real gold while you still can. Will GLD go Bust when real gold reaches $2,000 and people start unloading the Fiat GLD paper?

Jul 03 09:28 AM

[HA65MPH:]

GOLD IN THE HAND WORTH MORE THAN , 1000.00 FIAT DOLLARS IN BUSH !!!

Jul 04 02:54 AM