New Trading Range
It looks as though gold is in a temporary trading range with a low of about 540 and a high of about 550. How long will this last? Well, there is much concern in virtually all markets. Even the emerging markets, including the Asian Tigers are becoming erratic.
Spending here in America is out of control from the lowest consumer to the highest level of government. The debt to support this spending is also out of control even though interest rates have climbed for some time now. In spite of the high level of debt drag on our economy, San Antonio and Bexar County are considering vast sums of dollars and incentives to attract professional baseball and/or football teams. This will be of doubtful value to the area, but certainly will lay a heavier tax burden on the serfs, oops, I mean citizens.
By the way, have you ever thought how much the communities pay for these subsidized sports? Normally, the community builds an expensive stadium or play ground for the team. There are very few other businesses which receive such an abundance of tax money from the community to support the owners and players. For the owners and players it is a win-win situation. The poor citizens who cover much of the expenses can not even afford to attend the games. Nevertheless, they consider the "home" team, "their" team. Shakespeare said, "What fools we mortals be!" or words to that effect. Think about it, we taxpayers make millionaires of owners and players.
The housing industry is suffering a severe down turn in profit and even building in many areas of our nation. Condominiums are being hit particularly hard. Remember that vast numbers of employees among builders, mortgage companies, insurance, and real estate companies have been employed during the recent bubble in this sector of the economy. What happens as it slows down? Where will these folks find employment?
Speaking of employment, the new merger or take over between SBC and AT&T will put many into the unemployment lines.
The Mid-East situation is turbulent. More deaths reported in Iraq over night. The new Iranian Oil Bourse looms near by. It is scheduled to open about March 20th -- that is only 11 days away.
The continual threat to oil production and delivery in the Mid-East is of great concern. Most of the heavy demand for heating oil has passed by now easing some of this concern, but the threat is very real. Any major interruption in oil supply will be felt by all of us.
These are some of the world situations which are weighing heavily upon markets. The concern is world wide.
The new trading range of gold is offering opportunities for others to climb on board.
Gold has traded from a low of $539.40 last night to a high of $550.10 today. It is now at $545.50 in an upward direction. The prices below $540 have been steep spikes indicating increased buying there and around $540. Thus, $540 could be considered as a short term resistance level. Even the breaks above $540 have been brief spikes in the last 24-48 hours.
It is time for us to hang tough. We need to get out of debt and protect our capital.
Best to each, Doug
Spending here in America is out of control from the lowest consumer to the highest level of government. The debt to support this spending is also out of control even though interest rates have climbed for some time now. In spite of the high level of debt drag on our economy, San Antonio and Bexar County are considering vast sums of dollars and incentives to attract professional baseball and/or football teams. This will be of doubtful value to the area, but certainly will lay a heavier tax burden on the serfs, oops, I mean citizens.
By the way, have you ever thought how much the communities pay for these subsidized sports? Normally, the community builds an expensive stadium or play ground for the team. There are very few other businesses which receive such an abundance of tax money from the community to support the owners and players. For the owners and players it is a win-win situation. The poor citizens who cover much of the expenses can not even afford to attend the games. Nevertheless, they consider the "home" team, "their" team. Shakespeare said, "What fools we mortals be!" or words to that effect. Think about it, we taxpayers make millionaires of owners and players.
The housing industry is suffering a severe down turn in profit and even building in many areas of our nation. Condominiums are being hit particularly hard. Remember that vast numbers of employees among builders, mortgage companies, insurance, and real estate companies have been employed during the recent bubble in this sector of the economy. What happens as it slows down? Where will these folks find employment?
Speaking of employment, the new merger or take over between SBC and AT&T will put many into the unemployment lines.
The Mid-East situation is turbulent. More deaths reported in Iraq over night. The new Iranian Oil Bourse looms near by. It is scheduled to open about March 20th -- that is only 11 days away.
The continual threat to oil production and delivery in the Mid-East is of great concern. Most of the heavy demand for heating oil has passed by now easing some of this concern, but the threat is very real. Any major interruption in oil supply will be felt by all of us.
These are some of the world situations which are weighing heavily upon markets. The concern is world wide.
The new trading range of gold is offering opportunities for others to climb on board.
Gold has traded from a low of $539.40 last night to a high of $550.10 today. It is now at $545.50 in an upward direction. The prices below $540 have been steep spikes indicating increased buying there and around $540. Thus, $540 could be considered as a short term resistance level. Even the breaks above $540 have been brief spikes in the last 24-48 hours.
It is time for us to hang tough. We need to get out of debt and protect our capital.
Best to each, Doug
posted by Doug @ 11:31 AM
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