Discussion in 'Metal Futures' started by Sterling, May 22, 2009.
Must be some bad news a coming.
Yes I was thinking the same thing. Last time gold went up alot like this Citigroup got bailed out.
The sovereign debt downgrades are certainly playing a role and are bullish for gold. Gold doesn't pay a coupon (like bonds do), but it becomes relatively more attractive when sovereign bonds are regarded are less safe.
A week or two ago, I heard rumors that China was acting in the gold market... which I heard right after a large spike in gold. I never was able to confirm it, but keep your ears open for any news from China in regards to buying commodities as opposed to Treasuries.
Giethner is due to go to China to
1. beg for more money
2. ask them not to drive up the price of gold.
3. ask them not to buy GM out of bankruptcy court
4. and, prop up the UK
btw, the take out food is to die for...
What about all these wild rumors that collateral for Treasuries is USA land?
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