Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19
Online Grocery Shopping Will Go Mainstream as Soon as This Year - 17th April 19
America Dancing On The Crumbling Precipice - 17th April 19
Watch The Financial Sector For The Next Stock Market Topping Pattern - 17th April 19
How Central Bank Gold Buying is Undermining the US Dollar - 17th April 19
Income-Generating Business - 17th April 19
INSOMNIA 64 Birmingham NEC Car Parking Info - 17th April 19
Trump May Regret His Fed Takeover Attempt - 16th April 19
Downside Risk in Gold & Gold Stocks - 16th April 19
Stock Market Melt-Up or Roll Over?…A Look At Two Scenarios - 16th April 19
Is the Stock Market Making a Head and Shoulders Topping Pattern? - 16th April 19
Will Powell’s Dovish Turn Support Gold? - 15th April 19
If History Is Any Indication, Stocks Should Rally Until the Fall of 2020 - 15th April 19
Stocks Get Closer to Last Year’s Record High - 15th April 19
Oil Price May Be Setup For A Move Back to $50 - 15th April 19
Stock Market Ready For A Pause! - 15th April 19
Shopping for Bargain Souvenirs in Fethiye Tuesday Market - Turkey Holidays 2019 - 15th April 19
From US-Sino Talks to New Trade Wars, Weakening Global Economic Prospects - 14th April 19
Stock Market Indexes Race For The New All-Time High - 14th April 19
Why Gold Price Will “Just Explode… in the Blink of an Eye” - 14th April 19
Palladium, Darling of the PGEs, Shifting into High Gear - 13th April 19
MMT is a spectacularly Dem idea - 13th April 19
The 'Silver Lines' of Opportunity - 13th April 19
Gold Stocks Bull Market Breakout Potential - 13th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Gold Prices Rise Against All Major Currencies

Commodities / Gold and Silver 2010 May 03, 2010 - 11:10 AM GMT

By: Miles_Banner

Commodities

Best Financial Markets Analysis ArticleThe gold price reached a new high in dollars for 2010 in the early hours of trading for Monday 3rd May. The spot price reached $1,182.95 per ounce, its highest this year. It also reached new record highs in pounds, and euros. Yesterday’s Greek aid plan did little to strengthen support for the euro and currencies in general.


The long, drawn out handling of the Greek crisis has captured the growing unrest and disillusionment of the public and investors. But whilst Greece has been in the papers of late, it’s not alone in its predicament. It is the first strike for the euro. With Spain and Portugal looming it could be strike two and three… then what happens?

Strikes in Greece look certain to continue as people fail to comprehend why their standard of living must change. When the people avoid taxes and officials flout rules and twist regulations for their own personal benefit, the end outcome is a corrupt society in which responsibilities and promises are worth nothing.

Against this backdrop gold has steadily been gaining ground in recent weeks, and in April alone the yellow metal rose by 6%, with many analysts predicting the $1,200 per ounce to be breached sometime next week.

Britain’s future hangs in the balance

In Britain the record gold price represents a sliding pound and a sliding belief that we have a political party capable of coming into power and tackling the economical woes this country is experiencing. What disappointing alternatives for government we have available. We’ve had three live televised debates and we’ve still not heard committed actions on how they intend to tackle the deficits this country has hung itself with.

With just weeks away from what is one of the most crucial elections this country has ever experienced the public is left disillusioned and without options. It was up to David Cameron to step up to the plate and lead a credible alternative. Something which looked likely only three months ago. But public opinion has turned on the Conservative leader as the outsider, Nick Clegg, has gained popular support. The conservatives majority has dwindled as we lead up to the final few weeks (click here to see the polls and how they’ve changed here).

Whoever takes control taxes will of course go up. The government that takes the reins will have to make unpopular decisions just as they are being made in Greece. The boom generation is followed by the bust generation, but what comes next? The buggered?

Hedging against fiat currencies gold is still seen as the best alternative. A well respected source of value and globally recognised. A currency in its own right, one that is restricted in its supply, and therefore not so easily manipulated by governments.

As the chart below shows, gold prices today are looking bullish in all major currencies.

Source: Plexus Asset Management (based on data from I-Net Bridge).

It’s important to note that the recent highs have had very little to do with the dollar. Indeed the dollar index has stayed relatively balanced for the past few weeks.

If the dollar were to slide, which is a possibility/probability given the perilous financial positions of some of its states (see an article by the NY Times on 29th March 2010 here) and the staggering US national debt, then this gold rally could really take off.

With fiscal deficits and national debt problems not restricted to just Europe, the case for owning gold as part of your portfolio is compelling.

Sign up to receive gold price updates, free each week.

Regards,

Digger
Gold Price Today

P.S Digger writes a weekly email analysing the gold price and the gold industry. Visit Digger at Gold Price Today (http://goldpricetoday.co.uk).

© 2010 Copyright Gold Price Today - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - 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

6 Critical Money Making Rules