Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Friday Stock Market CRASH Following Israel Attack on Iranian Nuclear Facilities - 19th Apr 24
All Measures to Combat Global Warming Are Smoke and Mirrors! - 18th Apr 24
Cisco Then vs. Nvidia Now - 18th Apr 24
Is the Biden Administration Trying To Destroy the Dollar? - 18th Apr 24
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold New Global All Time Highs Across Top 10 Currencies

Commodities / Gold & Silver 2009 Nov 06, 2009 - 11:08 AM GMT

By: Adrian_Ash


Best Financial Markets Analysis ArticleThe official bid for gold, let alone private-sector demand, looks likely to hold strong...

GOLD didn't only break new Dollar highs this week.

Jumping to 8-month highs against the Euro, Swiss Franc and Canadian Dollar, it also took out fresh records versus the Indian Rupee and Chinese Yuan.

And more critically still, gold broke new ground against the world's major currencies en masse. Critically as in critical.

Buying 200 tonnes of metal from the IMF, the Reserve Bank of India sent gold to new highs in terms of all the money that counts.

Friday's news that America's job-loss recovery is worsening then confirmed the new record, peeping just above the previous hit set in Feb. of this year.

Weighted against the world's top 10 currencies by GDP, the price of gold broke its previous high on Wednesday this week. Shown as a percentage change since Jan. 2000 above, BullionVault's Global Gold Index does indeed lag the Dollar price (244% vs. 289% to date), but it's clearly beaten all other asset classes so far this decade.

And given what India's move says about Dollar diversification (that a lump of metal yielding zero and trading at all-time record highs also beats holding Euros, Yen, Yuan, Sterling, Reals, Loonies, Roubles and Pesos...), gold's return to central-bank bids might be a long way from finished.

Ten years ago, nobody wanted it. Least of all those central banks in Europe holding the most but about to launch a new currency – one lacking any sovereign-government backing, let alone a link to gold bullion.

By the time they stopped selling gold amid the financial crisis wrought by their last flirtation with record-low returns to cash, the rising powers of China, India and Russia – moving from fifth, ninth and twelfth to 4th, 8th and 10th in terms of global GDP respectively – had already begun hoarding metal themselves.

Now the US, Japan and Europe are holding rates at fresh record lows as near to zero as damn it. The official bid for gold, let alone private-sector demand, looks likely to hold strong from here.

By Adrian Ash

Gold price chart, no delay | Free Report: 5 Myths of the Gold Market
City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2009

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Adrian Ash Archive

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in