Gold Struggles toward 700, but Seems to be Held Back!
Yes, we have seen gold push to the higher 660s and then fall back again over the weekend and this week. It is a struggle and there likely to be some more talk of gold sales by central banks.
The housing situation is not much better with the prices of homes falling for the first time in 60 years according to www.NewsMax.com. The foreclosures are growing and workers in the industries associated with mortgages, construction, and sales are losing jobs once again. This is in spite of the government reported unemployment reports.
The sub-prime fiasco has spread abroad. The Chinese national bank and Hong Kong subsidiary have an exposure of $11.25 Billion according to Reuters. The German Landerbank Baden-Wuerttenberg took over Sachsen LB and spent $342 Million to bolster losses due to sub-prime loans.
The dollar is under some pressure again and has moved lower. Gold is at $665.50 as this is written. Remember this is higher than last week. The mining stocks are holding fairly well. Harmony (HMY) is at 9.08 up 0.12 in spite of the accounting problems which it is moving to mend. Silver is still under pressure and languishing around 11.72. Silver will follow gold on its way upward, so we must be patient.
The Fed is likely to lower interest rates at its September meeting which should give the market another temporary band aid. There must be some panic at the Fed as the sub-prime unfolds and as the markets are under downward pressure.
Long term the dollar looks ever weaker and the precious metals look ever stronger. There will be set backs along the way.
Keep your faith upwards toward our Sovereign Lord of all. He is in control and we must rest in His care.
Best to each, Doug
The housing situation is not much better with the prices of homes falling for the first time in 60 years according to www.NewsMax.com. The foreclosures are growing and workers in the industries associated with mortgages, construction, and sales are losing jobs once again. This is in spite of the government reported unemployment reports.
The sub-prime fiasco has spread abroad. The Chinese national bank and Hong Kong subsidiary have an exposure of $11.25 Billion according to Reuters. The German Landerbank Baden-Wuerttenberg took over Sachsen LB and spent $342 Million to bolster losses due to sub-prime loans.
The dollar is under some pressure again and has moved lower. Gold is at $665.50 as this is written. Remember this is higher than last week. The mining stocks are holding fairly well. Harmony (HMY) is at 9.08 up 0.12 in spite of the accounting problems which it is moving to mend. Silver is still under pressure and languishing around 11.72. Silver will follow gold on its way upward, so we must be patient.
The Fed is likely to lower interest rates at its September meeting which should give the market another temporary band aid. There must be some panic at the Fed as the sub-prime unfolds and as the markets are under downward pressure.
Long term the dollar looks ever weaker and the precious metals look ever stronger. There will be set backs along the way.
Keep your faith upwards toward our Sovereign Lord of all. He is in control and we must rest in His care.
Best to each, Doug
posted by Doug @ 10:30 AM
0 Comments:
Post a Comment
<< Home