Gold Rallies with Dollar Up and Oil Down
by Joe Battaglia
Posted: June 2, 2008
Gold started the
day substantially higher, rising to $898.50 in the futures markets, but then
pulled back to a more modest $2 gain as the dollar strengthened. The dollar is up 19 basis points at
73.07. Oil is also moderating gold's
advance as it is down $1.50 at $125.85.
Silver on the other hand, which had been outperforming gold is currently
trading down $.10. Silver may be feeling
the pressure from the latest ISM survey, which indicates the economy remains in
a recessionary mode. The economy is
suffering from the housing sector. The
ISM manufacturing index was at 49.6, above expectations of 48.5. The prices index was up sharply at 87 versus
84.5 in April, indicating inflationary pressures are growing. While the metals may be quiet and trading in
a relatively sideways mode for the next month or so, the trend remains higher
and analysts continue to see gold posting a substantial advance as we move into
the autumn. $1,000 an ounce in the
month of September is a widely utilized target.
Smart investors
always want to accumulate gold at the best pricing opportunities. That is what is presenting itself at this
point. Gold is a bargain buying
opportunity, as is silver. Therefore,
since we are in a long-term rising trend and gold is holding well above its 200
day moving average, investors should be accumulating gold at these levels.
The first potential
hurricane of the season, Arthur, has been downgraded to a tropical depression
and is not likely to affect gulf oil production, which is why oil pulled off a
little today. However, this is the
first storm of the hurricane season.
There could be as many as five or six hurricanes that could threaten oil
production in the gulf this year. Given
that factor, oil is likely to remain firm and gold should benefit from firmer
oil prices. At the moment a weaker euro
is the principle factor that is holding gold and silver back. However, the euro is likely to continue to
remain a strong currency against the dollar.
Secretary Paulson
is in the Middle East speaking in an effort to encourage sovereign investment
funds to assist our banking system. He
pointed out that the Middle East has over $4 trillion U.S. dollars that it
could put to work in our banking and financial system. It is a sad state of affairs when we are
going "hat in hand" to the OPEC countries trying to get them to assist our
banking system. Perhaps that's why so
many people are turning to gold as a proper diversification for their
investment portfolios. Get started
today.
Investors should
contact Goldline and ask them to explain the features, benefits and cost
structure of the various gold and silver investments that are available to
you. Select those that best meet your
own personal and individual investing needs and objectives. Investors looking for low transaction costs
may wish to consider bullion assets such as American Eagles, Krugerrands,
Canadian Maple Leafs, Silver Bags or Silver Bars. However, the Price Guarantee Program is not available with these
assets.
If you would like
to take advantage of the Price Guarantee Program, which provides you with a
two-week window of opportunity in which to re-price your order in the event of
a correction, you must select assets with some collectible value such as Swiss
20 Francs, Double Eagles and Silver Dollars.
When you acquire 29 Swiss 20 Francs, you will receive the 30th
coin for free. Investors may wish to
consider several tubes of these coins to obtain several free Swiss 20 Franc
gold coins. Call Goldline at
1-800-827-4653 for further information.
To receive the free information
package including the special booklet from the FDIC that helps you to
understand whether your bank accounts are safe and enables you to be sure that
your bank has the proper insurance to protect your deposits, call
Goldline. We also provide several other
helpful articles. There are also a
number of other independent third party source articles that you will find
extremely helpful and informative. You
will also receive the company brochure and a Coin Facts Risk Disclosure
Booklet, which you should read carefully before you make an investment.
Goldline will also send you a free
CD of the special interview with analyst Frank Barbera if you ask for it. This is a remarkable interview and I think
everyone would benefit from listening to it.
Call Goldline now to receive your free information package at
1-800-827-4653.
You should carefully read the client Account Agreement and the Risk Disclosure information.
These explain important things you need to know before you invest in precious metals, such as:
past performance does not guarantee future results. Transaction costs are generally 5% to 10% on
bullion and 30% to 35% on coins. This is also referred to as the spread, or the difference
between the buy price and the sell price. The market must go up enough to overcome this spread
before an actual profit is achieved. All markets go up and down. Coins are a long-term, three- to
five-year, preferably five- to ten-year investment, suitable for 5% to 10% of the average
portfolio. Please see Goldline's Risk and Disclosure Statement for further details.
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