| Since I wrote this article, the current price of gold is | | | | going ballistic today.- Discount futures |
| up $ 30 to over $ 900 per oz At 12:18 of the gold | | | | Oil is Moving Higher |
| futures price (for August delivery) was trading at $ | | | | Another reason for the surge in gold today was oil |
| 31.10. This is an increase of 3.5 percent! And if gold | | | | prices. Today, you had Algeria's Oil Minister – |
| manages to close at this level, it would be the | | | | Chakib Khelil – come out and say in a French |
| biggest percentage gain in 16 months! | | | | television interview that an Iranian conflict could |
| So, why gold is surging after languishing since March, | | | | cause oil prices to rise over $200 a barrel. And |
| when the metal hit its all-time high of $ 1,033.90 per | | | | perhaps even as high as $400 a barrel! On that note, |
| ounce? | | | | the price of oil surged to $138.95, which is just a bit |
| The Fed Is All Talk and No Action | | | | below the record high of $ 139.89, on the 16th June |
| Yesterday, theU.S. Federal Reserve kept interest | | | | was fixed. Why? Because Iran just happens to be |
| rates at 2 percent, although it acknowledged that | | | | the second largest OPEC oil producer and owner of |
| inflation expectations were rising. People are starting | | | | proven oil reserves. Gold responded big-time to these |
| to worry that the Fed may be behind the curve. The | | | | comments.- Discount futures |
| expectations for a rate increase have diminished with | | | | In the long run is that the gold price goes further |
| the Federal Reserve say that they believe inflation is | | | | higher. Here's why: |
| likely at a later date at a moderate year. | | | | Gold is usually bought to protect against the loss of |
| Have on the one hand, you have to say the Fed is | | | | purchasing power. The Federal Reserve seems to be |
| that they are concerned about inflation. But on the | | | | suggesting that it more relates to the protection of |
| other hand, it seems that they do not go to "the | | | | the weak growth of the U.S. economy and that |
| walk' and do anything about it. That's why gold is | | | | inflation is thelesser of two evils. |