Gold futures hit a new record as the global economic scene continues to boil with turmoil. Marketwatch accounts that gold went over $ 1,400 per ounce for the very first time on the Comex of the New York Mercantile Exchange, a new history. It soon peaked at a high of $ 1,407.20 per ounce.
Gold heading down today
Trading started Monday with a decrease of as much as $10 from Friday’s closing price on gold futures ($1,397.70 per ounce). There was also a raise in currency value. This had been for the dollar of course. But dark clouds of European debt – particularly in Greece, Ireland and Portugal – massed on the horizon, giving gold prices, silver prices and even copper prices a historic lift.
Bond purchasing by the Federal Reserve caused the market to change
In the next eight months, the Federal Reserve can be spending $600 billion in bonds. This has brought on many individuals to start purchasing precious metals instead of keeping all of their paper money. Marketwatch explains that currency values are not heading down too much. Against other paper currencies, the United States of America Dollar rose .5 percent. The euro did decline in value though. Greece, Ireland and Portugal bonds underperforming are what have brought on this.
Re-instituting a gold standard
The G20 conference in Seoul, South Korea is a place that World Bank President Robert Zoellick suggests the gold standard be discussed. Zoellick said, “Employing gold as an international reference point of industry expectations about inflation, deflation and future currency values” could help set up a better economic yard nevertheless, accounts a Financial Times piece. James Cordier agrees with this. He is a portfolio manager at Optionsellers.com. We’ll see what a global gold standard does. It could “stabilize gold and turn what is nevertheless a thin market into a more orderly one.” Not only that, but currency values would benefit, as it would be tied to something to something more tangible.
Silver and copper rates also shot up
According to Marketwatch, silver rates went up. A $3.96 per pound raise in copper prices occurred in Dec too.
Is it government manipulation – or luck?