The Plunge Protection Team (PPT)has had a very busy morning. If we are having a political, financial, or terrorist attack, what to do ? SELL GOLD! of course. It all makes me think what will finally drive the price of gold higher when it has such powerful forces against it.
Bog, My chart shows a spike from 4:30 to 8:30 over 428. They are trying to hold down gold. It costs them a lot to keep the lid on....I see gold as a thermometer, if the price stays low then the economy isn't sick and the market will continue to climb. I don't think it could have been reduced if this had happened in the US.
Bush says UCL buyout should proceed through CFIUS review without him commenting. Chinese appear ready to up bid or provide guarantees for UCL price, which would put even more pressure on for approval. Fundamentally, Chinese acquisition of Unocal would reflect reallocation of paper money assets into real options such as oil and gas production, of strategic value to industrial countries. And dollar has to reflect long term decline in value and balance of trade imbalances as a result, ie the UCL purchase values oil at a very high level, relative to dollars. This means commodities are the only safe haven, actually copper, platinum, industrial/commercial metals may be better than gold, but then GG has a little copper in its mix as well.