Gold tips off 3-month high after U.S. data

Gold tips off 3-month high after U.S. data

www.reuters.com

* Q4 GDP data shows U.S. economy shrank less than expected

* Indian gold, euro-priced gold hit records

* Silver hits highest level since Oct 1

(Releads, updates prices, adds comment)

By Jan Harvey

LONDON, Jan 30 (Reuters) - Gold slipped from a three-month high on Friday after data showed the U.S. economy had contracted by less than expected in the fourth quarter, taking some of the heat out of safe-haven buying.

Spot gold climbed 2 percent to $926.90 an ounce, its highest since Oct 10. It was quoted at $918.90/920.90 an ounce at 1406 GMT, up from $906.75 in New York late on Thursday. In the immediate wake of the data it slipped to $916.60.

Gold priced in euros hit a record high of 720.53 euros.

"On first glance the (GDP) figures are generally good, so they should be negative for gold," Calyon analyst Robin Bhar said. "Growth is better than expected, but deflation is also stronger, so it is a bit of a double whammy for gold."

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Related AboveTopSecret.com Discussion Threads:
*China considering dropping U.S. Treasuries and Buying Gold Instead*Very Important News- Implication

Ok. Gold has just SHOT WAY UP from just a month ago. It has seen a $120 increase in price in that time. This is not a typical jump, and for me just compounds the problem the dollar will face shortly. Gold is climbing the charts like a British Rock Star due to very high demand. Governments are secretly leaving the dollar for gold as a hedge to inflation fears due to our Central Banks' lack of monetary responsibility. M1 has launched 70% in the last few months, anyone watching should be getting nervous, and this news should come as no surprise to anybody who is paying that much attention(ATS).

I have been saying for a while that the Government of Saudi Arabia, China, Iran, and Russia are buying up American, European, Indian and Even Russian gold by the tens of tonnes and with their American dollar reserves. But they're not telling anyone about it. And with good reason, they want to get rid of the dollar before it goes bust and they're not about to tip off the public to their dealings(I wouldn't, it's a smart move). Dumping the dollar onto gold to pad their own currencies in order to cushion the blow of decoupling from the dollar before it takes a dive is a very safe move for foreign economies exposed to our massive debt and the potential of a US Bond collapse(Which for many reasons I believe will happen either this year or 2010).

This is just the beginning. Citigroup forecasts $2000 an ounce gold by the 3Q2009, if you're not worried about the dollar now you need to start and buy while it's still low and still available. Don't buy gold on PAPER. It is a bad investment and that paper can be canceled by the government in an "Emergency"(I used quotes because they lie alot and there's a chance they'll start confiscating gold backed assets as well as gold). Buy the physical stuff and find a very safe place to hide it. You'll need it.



www.reuters.com
(visit the link for the full news article)

I hope people were/are not selling their jewelry to cash4gold and gold kit because they are making a big mistake. It's no surprise companies are trying to buy as much gold as they can.

Peter Schiff even said that gold would rise up to 5,000 an ounce by 2012. I would listen to him and buy gold as soon as possible.

Peter Schiff is good to listen to for long term investment advice. He's a forecaster and usually leans to consistent yield markets. Right now would be a good time to have Europac handle your assets(Should you have any left.)

Addition:








I added this so that you can see what the direct cause of this gold spike is.


Series: GCECA, Real Government Consumption Expenditures & Gross Investment



Source

Originally posted by projectvxn


. Gold is climbing the charts like a British Rock Star due to very high demand. Governments are secretly leaving the dollar for gold as a hedge to inflation fears due to our Central Banks' lack of monetary responsibility. M1

I have been saying for a while that the Government of Saudi Arabia, China, Iran, and Russia are buying up American, European, Indian and Even Russian gold by the tens of tonnes and with their American dollar reserves. [...]
And with good reason, they want to get rid of the dollar before it goes bust and they're not about to tip off the public to their dealings

i think the First & foremost concern is the liquidity of the US Treasuries
that nations like China, Russia, Saudi all hold - in the Trillions of $$$

the devaluation of the USD is likely, 2-3 years distant, but the Treasury 'bubble' is very real and immediate... and that's the real reason those nations are buying Gold (& the price goes up)


hey, thats just my take on the ongoing drama of gold/PM...
thy are trying to retain at least some of the value of their trade profits
by hoarding gold instead of holding 100% of their profits in USTreasuries

Gold's value as a safe-haven can only keep the price so high - the industrial demand for the metal is plummeting thanks to the larger woes affecting the economy.

I don't see gold as that great an investment, not at these prices. That's just me personally.

Everyone should have some physical gold if they can afford it, but I would have bought it when we were looking at per ounce prices in the 300's, not the 900's...

St Udio

You may be correct. However, inflation is something we have to worry about now. When this money makes it to American hands and starts flooding the market(Which may actually happen this year or next) we are going to see a massive capital flight. That is, of course, if insolvency and default doesn't catch up prior to.

[edit on 31-1-2009 by projectvxn]

reply to post by WyrdeOne


Gold is a good investment to hedge inflation. But not if you're going to keep it on paper. That is a bad idea, and in that way it is a bad investment because the price of gold can be manipulated by government hoarding, removing gold paper from the market or flushing the market with gold paper to speculate prices on top of government seizures. There's alot of risk in gold if you're an investor used to the stock market or money market Mutual Funds, but if you're going to hold on to something for future trade purposes, there is nothing better than physical gold, or even silver(Palladium and Platinum are good too, they will appreciate in value as the emerging eastern economies continue to expand their industrialization).


[edit on 31-1-2009 by projectvxn]