Looks like gold is starting a little rally here.. what would attribute this rally to... dollar is strengthening here.. so its kinda strange?
here read this ... -Gold Gains on Comex as Investors Shift Holdings From Euros- June 10 (Bloomberg) -There is gold being bought in euro terms- -Gold, which has moved almost in lockstep with the euro's performance against the dollar in the past three months, at a correlation coefficient of 0.76. -The correlation was 0.93 before voters in France and the Netherlands rejected the treaty- (Also helping gold prices Friday was the strength of the mining sector )
http://www.bloomberg.com/news/markets/commodities.html Thanks.. I got the link. This sums it up... ``Investors are probably a little disturbed about holding euros and uncomfortable holding U.S. denominated assets, so they look to the third alternative, which is gold,'' Gartman said.
Basically the Euro is toast.. and its back to either dollars or gold.. and I bet many are buying both.. I personally would go back into Gold in favor of the dollar.
The value of gold measured in US Dollars only shares one common variable with the value of the US Dollar measured in other currencies. Therefore the value of gold measured in US Dollars "gold price" need not follow the value of non-USD currencies measured against the US Dollar. Although the attached chart shows the value of one ounce of gold being less than 350 euros, it does not include Friday's data, which would show a reading of about 352 Euros.
Gold wont really move until there is real demand - the demand you're talking about is arb demand, not "I need gold in my house now because the aliens are invading type demand."
Another goldbug who thinks a 1.5% move is bigtime. Dude, I bot jva at 5.75 and kicked it out 2 days later for 8.10 - in gold thats what a $ 150 move in gold? Until gold does that, OK, I'll even settle for a $50 move, its a sleepy commodity.
dude ... I am not a gold bug and you cannot compare gold futures to a thinly traded ipo stock ... but it is nice to see you caught a momo move in it good luck to you