Gold Bounces in All Currencies as “Historic” Day for US Bonds Threatens “Dollar Collapse” – Thursday 28th May 2009
This is a must read from Adrian Ash over at Bullionvault.com
Wholesale Gold Prices added $5 early Thursday to record their best AM Gold Fix this week in London, hitting $949.75 per ounce as world stock markets fell and US government bonds bounced from their worst sell-off so far in 2009.
Crude oil held above $63 per barrel, but base metals and soft commodities fell back.
“People are fearful again that we could be facing a Dollar collapse, which would have severe ramifications across the board,” says Robin Bhar at Calyon Bank in London, speaking to Reuters.
“All the factors that people have been warning about for several months now seem to be coming to the fore.”
“What I think we’re seeing here,” says TD Ameritrade’s James Grady to the New York Times, “is flat-out concern about the amount of debt the government’s going to be issuing.
“People are realizing they don’t want to own bonds.”
Japanese and European bond prices slipped Thursday morning after mixed data showed economic confidence rising, but consumer and industrial confidence falling once more.
http://goldnews.bullionvault.com/gold_bonds_052820093
Adrian Ash runs the research desk at BullionVault, the world’s No.1 private investor gold service online. Formerly head of editorial at Fleet Street Publications – London’s top publisher of financial advice for private investors – he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to 321gold, FinancialSense, GoldSeek, Prudent Bear, SafeHaven and Whiskey & Gunpowder among many other leading investment websites. Adrian’s views on the Gold Market have been sought by leading news organizations including the Financial Times, the Economist, Bloomberg and Der Stern in Germany.
