"Gold, seen as a classic hedge against inflation and economic uncertainty, has benefited from record crude oil and gasoline prices and doubts about U.S. economic strength and the dollar, especially after the destruction wrought by Hurricane Katrina along the U.S. Gulf Coast."
http://www.foxnews.com/story/0,2933,169617,00.html
**But now the $$ and Gold are both rising??** this I think shows SPECULATORS are flocking to gold and gold shares, not what usually happens this early in a bull market, how will gold bull SHAKE THEM OFF? or is their interest JUST beginning?
GREENMAN sees this, gold price at 17 year highs, and market has rallied in belief KAtrina will PUT A HALT to the interest rate increases, and WHAT IF as I suggested this will not happen? We wont have long to see.
ALSO: from Fox news link
"Now a number of traders were awaiting a break above the key $471 level, which was the high in the COMEX spot month from last December." **(this price also listed as KEY LEVEL by EWT)
AND MORE:
Precious metals consultant CPM Group said Friday that gold and also rising platinum have further upside in the short term, but they may be nearing longer-term peaks.
Factors including more mine supply and less jewelry demand at higher prices plus rising interest rates in the United States affecting investment demand, could combine to put a ceiling on the gold price, it added.
CPM said that although a spike above $470 may be possible, it likely was not sustainable due to market fundamentals.
The market also was in the rare position of breaking up its close inverse relationship with the dollar as the U.S. currency barely budged in the last two days while gold surged.
**Basically, just as it took gold quite some time to better previous high to current levels, besting $471 is not likely in one fell swoop.Also bullishness to the metal is FEVER HOT.
NOW THIS IS A HOOT, "experts HAD been saying the FED would HALT so lets rally now they say
Fed hike could rally stocks
By Jasmina Kelemen, MarketWatchLast Update: 12:01 AM ET Sept. 17, 2005
SAN FRANCISCO (MarketWatch) -- A lack of conviction among investors has restrained U.S stocks in the past few weeks, but a vote of confidence in the economy from the Federal Reserve next Tuesday would likely lead to gains, strategists said.
Duratek
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