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Gold Plunges As Slower Economy, Oil Slump Ease Inflation Risk

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http://www.businessweek.com/news/2011-06-23/gold-plunges-as-slower-economy-oil-slump-ease-inflation-risk.html

June 23 (Bloomberg) -- Gold futures plunged the most in seven weeks as a slowing U.S. economy and slumping oil prices eased the risk of inflation, while the dollar rallied on signs the Federal Reserve won’t add more stimulus measures.

The economy is recovering at a “moderate pace, though somewhat more slowly” than the central bank had expected, Fed Chairman Ben S. Bernanke said yesterday. The dollar gained as much as 1.4 percent versus six major currencies, while oil prices dropped to a four-month low after the International Energy Agency said its members would release crude from strategic reserves.

“It’s basically down on what the chairman said yesterday,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Also, crude is sharply down, while the dollar has risen.”

Gold futures for August delivery declined $32.50, or 2.1 percent, to $1,520.90 an ounce at 10:32 a.m. on the Comex in New York. A close at that price would mark the biggest decline since May 5. The metal reached $1,559.30 yesterday, the highest price since touching a record $,577.40 on May 2.

Before today, the price rallied for seven straight sessions and was up 9.3 percent this year, heading for an 11th consecutive annual gain.

Policy makers decided not to implement any new stimulus measures after completing $600 billion of bond purchases this month in a second round of quantitative easing, or so-called QE2, intended to revive growth.

Marc Faber, the publisher of the Gloom, Boom & Doom report, still favors gold and silver. In an interview on Bloomberg Television’s “On the Move Asia,” Faber said he will keep accumulating gold, even though prices of the metals may decline in the next three months.

--With assistance from Phoebe Sedgman in Wellington and Madelene Pearson in Mumbai. Editors: Steve Stroth, Millie Munshi

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Gold futures plunged the most in seven weeks

Perhaps I'm simply uninformed in finance-speak, but what's a "future"? If it's a 'projection' then it sounds to me to be just a guess. Which begins to sound like a 'financial instrument' (a term which makes me instantly recoil and want to run around the room shouting 'bullsh*t monkeys!') and not gold at all. Have I spent too long following this site and become overly cynical? The gold price itself just correct back a few days of minor increases - no major plunge in real gold, at least yet.

If real gold goes down, I'm happy because I can buy more for less. If it goes up, I'm happy because what I have already is more valuable.

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If real gold goes down, I'm happy because I can buy more for less. If it goes up, I'm happy because what I have already is more valuable.

That's exactly the way I see it and in all honestly I've been hoping for a pullback to below £900 an oz, maybe this will be it, but maybe Greece will go up in flames tomorrow. It's fun and exciting that much is for sure...

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Perhaps I'm simply uninformed in finance-speak, but what's a "future"? If it's a 'projection' then it sounds to me to be just a guess. Which begins to sound like a 'financial instrument' (a term which makes me instantly recoil and want to run around the room shouting 'bullsh*t monkeys!') and not gold at all. Have I spent too long following this site and become overly cynical? The gold price itself just correct back a few days of minor increases - no major plunge in real gold, at least yet.

If real gold goes down, I'm happy because I can buy more for less. If it goes up, I'm happy because what I have already is more valuable.

Yep, it's a guess. But as I understand it, that guessing is actually factored into today's spot price of gold. So if big players in the market are go short with futures (as many of the big banks allegedly are), which is just a bet that they think gold/silver will go down in the future, that weighs on the real price of gold/silver in the market TODAY!

Edited by General Congreve

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http://www.businessweek.com/news/2011-06-23/gold-plunges-as-slower-economy-oil-slump-ease-inflation-risk.html

June 23 (Bloomberg) -- Gold futures plunged the most in seven weeks as a slowing U.S. economy and slumping oil prices eased the risk of inflation, while the dollar rallied on signs the Federal Reserve won’t add more stimulus measures.

The economy is recovering at a “moderate pace, though somewhat more slowly” than the central bank had expected, Fed Chairman Ben S. Bernanke said yesterday. The dollar gained as much as 1.4 percent versus six major currencies, while oil prices dropped to a four-month low after the International Energy Agency said its members would release crude from strategic reserves.

“It’s basically down on what the chairman said yesterday,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Also, crude is sharply down, while the dollar has risen.”

Gold futures for August delivery declined $32.50, or 2.1 percent, to $1,520.90 an ounce at 10:32 a.m. on the Comex in New York. A close at that price would mark the biggest decline since May 5. The metal reached $1,559.30 yesterday, the highest price since touching a record $,577.40 on May 2.

Before today, the price rallied for seven straight sessions and was up 9.3 percent this year, heading for an 11th consecutive annual gain.

Policy makers decided not to implement any new stimulus measures after completing $600 billion of bond purchases this month in a second round of quantitative easing, or so-called QE2, intended to revive growth.

Marc Faber, the publisher of the Gloom, Boom & Doom report, still favors gold and silver. In an interview on Bloomberg Television’s “On the Move Asia,” Faber said he will keep accumulating gold, even though prices of the metals may decline in the next three months.

--With assistance from Phoebe Sedgman in Wellington and Madelene Pearson in Mumbai. Editors: Steve Stroth, Millie Munshi

I believe everything Ben Bernanke says, you just have to look at his previous track record of economic statements. :lol: On the other hand, Marc Faber knows what he is doing and has been making money for decades in the markets. He is very clued up on the Eastern markets and predicted what was on the cards for the West with its unsustainable private and government debt, unlike the Bernank.

Gold is down a massive £12 and 7.50 Euros. I am getting flashbacks of 2008 and getting a margin call down in the bunker.

Edited by Take Me Back To London!

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I believe everything Ben Bernanke says, you just have to look at his previous track record of economic statements. :lol: On the other hand, Marc Faber knows what he is doing and has been making money for decades in the markets. He is very clued up on the Eastern markets and predicted what was on the cards for the West with its unsustainable private and government debt, unlike the Bernank.

Gold is down a massive £12 and 7.50 Euros. I am getting flashbacks of 2008 and getting a margin call down in the bunker.

:lol: Highly amusing vid. Even if it's one for the bears. Love the ending.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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