Wednesday, Mar 19, 2008
Why the US rate cut is good news for gold
MoneyWeek: Why the US rate cut is good news for gold
The US central bank cut rates by .75 yesterday - and, oddly, gold then fell $25 whilst the dollar rose. The markets may be a little calmer for now, but the fear will return, says Dominic Frisby.
Posted by damien @ 11:02 AM (301 views) Add Comment
4 Comments
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1. Frizzers said...
This has to be one of the best articles I have ever read on gold and yesterday's rate cuts, but then I would think that ...
2. stillthinking said...
The article doesn't mention deflation, which is a good (excellent) reason for why the dollar would rise against gold.
3. dohousescrashinthewoods said...
Gold has nosedived today.
Not that I don't expect it to recover unles the Fed really can "fix" it (in the heroin sense..?)
4. techieman said...
s2r1 will like this! - If gold holds above mid 930s then we go for new all time highs. Currently 950ish would be a good buy for two main technical reasons:
1. We are at the bottom of a upward trend channel,
2. The fall has been quick and scary (which puts people off buying), but is typical of liquidating the weak hands.
Also the risk is limited (as far as u can see to around $15 but the reward is up to new highs- i.e around $80. Am very interested in this Armstrong model and the w/end date.