Gold Lower - Buying? - Dollar Higher - God Sovereign

The dollar is a bit higher today and gold is down. Gold is presently at 999.20 desperately attempting to recover the $1,000 level. It has been reluctant to give it up.

Silver is fight to get back to 17.00, but keeps getting sold along the way. Silver is 16.68. It is still early in the day's trading.

From Business Spectator:

Gold drops near 1-wk low as US dollar rises

By Humeyra Pamuk of Reuters

LONDON - Gold dropped below $US1,000 an ounce, its lowest in almost a week, as the dollar rose broadly and investors took a breather ahead of this week's US Federal Reserve and G20 meeting.

Analysts said selling pressure from the physical market has also weighed on bullion which climbed to $US1,023.85 an ounce last week, its highest since March 2008, but failed to match its record high of $US1,030.80 an ounce.

Spot gold was at $US1,000.15 an ounce by 1125 GMT, versus $US1,006.15 an ounce late in New York on Friday. The precious metal has gained as much as 16 percent this year. Read it HERE.

The dollar is still in a definite long term downward trend. But as gold sales news hits the markets, the precious metals generally suffer. There is little reason for the dollar to bounce upward except that prices very seldom continue or never continue without a change of direction as they get an upward spurt or hit a sandy spot.

From MineWeb.com:

WILL HELP POOR NATIONS WEATHER CRISIS

IMF will sell up to 403.3 tonnes of gold - could begin next week

The International Monetary Fund said it will sell one-eighth of the agency's gold reserves-without disrupting the gold market - beginning at the end of this month.

Author: Dorothy Kosich
Posted: Monday , 21 Sep 2009

RENO, NV -

The IMF Executive Board has approved the sale of one-eighth of the agency's gold reserves, up to 403.3 metric tons, with the sales to be conducted under safeguards against disruption of the gold market.

The gold sales are a critical element of a package of measures approved in April 2008 aimed at setting the IMF's finances on a sound long-term financial footing. An endowment will be created with the profits from the gold sales.

The gold sales profits are also aimed at increasing the fund's resources for lending to low-income countries, a policy approved in July of this year. The IMF hopes to increase its concessional lending by up to $17 billion through 2014, including up to $8 billion over the next two years. The agency also approved zero interest payments on outstanding concessional loans through the end of 2011 for all low-income members. Read it HERE.

I always wonder about the humanitarian gifts from time to time. The old wise tale that "It is better to teach a man to fish than to give him a fish," always comes to mind.

From MineWeb.com:

Reuters

China weighs purchase of IMF gold -report

09.21.09,

* Market value of IMF sale around $13 billion (Adds comments of central bank officials, paragraphs 7- 15)

BEIJING, Sept 21 (Reuters) - China is considering buying gold being offered for sale by the International Monetary Fund, Market News International said on Monday, citing two unnamed government sources, but the report could not immediately be confirmed.

China will consider buying if the price is right and the return is relatively high," MNI quoted one of the government sources as saying.

Gold, which had dipped just below $1,000 an ounce, rebounded to $1,003.45 after the report. That would put the market value of the 403.3 tonnes on offer from the IMF at close to $13 billion. Read it HERE.

China seems to be lead by practical wisdom in its quest for more gold. China is very likely to buy whatever the IMF offers. Remember China is in the midst of a program of encouraging citizens to buy gold. That is wise. Most other nations discourage the practice.

From MineWeb.com:

SCOTIAMOCATTA METAL MATTERS

Gold's big picture bullish; good upside silver potential

After some gold ETF redemptions, ETF holdings have started to climb again, which ScotiaMocatta considers a "potentially bullish development."

Author: Dorothy Kosich
Posted: Monday , 21 Sep 2009

RENO, NV -

"The big picture remains bullish for gold," ScotiaMocatta advises, "and if equities start to correct more safe haven buying might return."

ScotiaMocatta also suggests, "Silver's rebound is looking robust and with prices continuing to outperform gold, there is likely to be good upside potential."

Meanwhile, gold ETF holdings are starting to rise again, suggesting redemptions have run their course, which ScotiaMocatta calls "a potentially bullish development." Read it HERE.

There is little doubt that the bull trend in precious metals is still strong. There will be dips along the way, but the direction is onward and upward. We must hang tough during the times of set backs and I will be looking for buying opportunities.

God has given us brains and has created us in His image. This means that we have a responsibility to act in accordance with His word. His word speaks to every aspect of life. The Bible has the answers to all of men's activities and life. Through the Bible we gain a world and life view that is pleasing to King Jesus.

It applies to investing many times. Proverbs tells us to look carefully over our flocks. It also says that we are to be diligent in our occupation. These are but two examples. After all, our flocks may be investments. We should carefully and diligently follow our investments. As we study and learn more, we can be more attuned to markets.

We must be diligent in our efforts, commit the plans to the Lord, and praise Him for the results. We do our part, but the results are His. Praise Him daily.

Gold is now 997.40 and silver is 16.64.

Best, Doug