US Dollar Plunges, Gold Soars To New Record, Sold With $200+ Mark Ups

Friday, October 15, 2010
By Paul Martin

Hints of mutiny within Fed as attempt to crash dollar becomes clear

Steve Watson
Infowars.net
Thursday, Oct 14th, 2010

The US dollar plunged once again today as the currency continues to be battered by increasingly substantial rumours that the Federal Reserve will announce, within the next three weeks, plans to buy $1 trillion of government debt in the form of “monetary easing”.

The dollar hit a fresh 10-month low Thursday morning, falling for a third day running against a basket of six major currencies.

The greenback is trading at a near 15-year low against the yen as the selling pressure picks up momentum.

The euro rose 0.8% against the dollar, trading at $1.40, the Canadian dollar traded parity, while sterling gained almost 1% against the US currency, trading at $1.6.

Dollar negativity is now at its highest point for the last eight years of the weakening trend.

Of course, this is coupled with another record breaking day for gold, with Comex gold prices hitting another record high of $1,388.10 in December futures.

Spot bullion in London hit $1,387.10 a troy ounce, up 1.2 per cent on the day, and 26.5 per cent up since January.

The next psychological resistance point of $1,400 for gold looks well within reach.

“Gold is expected to rally towards $1,404 per ounce as it has climbed above a consolidation range between $1,324.85 and $1,364, said Wang Tao, a Reuters market analyst.”

Gold is so strong that it has also been gaining on the euro.

Earlier this week Goldman Sachs reevaluated its forecast for the gold price to $1,650 per ounce within the next 12 months. That forecast, a revision of more than 20 percent, also included an expectation for gold to hit $1,400/toz and $1,525/toz within 3 and 6 months respectively. These figures are now beginning to look extremely conservative.

“Gold’s climb is not showing any signs of slowing: $1400 is now being eyed as a short-term target, which seems easily achievable as long as the dollar continues to fall across the board,” Edel Tully, precious metals strategist at UBS in London, told the Financial Times.

Ms Tully has increased her one-month forecast for bullion to $1,425 an ounce.

Sales of one ounce gold coins on ebay continue to routinely exceed a markup price of over $200 higher than spot price value, a difference of over 15 per cent.

This one ounce Buffalo, for example, which is particularly desirable due to its pure 24-karat content, attracted a winning bid of $1,625, some $237 above the current price of gold:

The Rest…HERE

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