Gold futures strike history as European bond market deflates

Gold futures, also as silver prices and other precious metals, hit a history high as major economic shifts in the U.S. And abroad occurred. According to Marketwatch, gold futures eclipsed $ 1,400 per ounce for the very first time on the Comex, a sign that currency values are in a great deal of flux. It soon peaked at a high of $ 1,407.20 per ounce.

Gold going down today

Trading began Monday with a decrease of as much as $10 from Friday’s closing price on gold futures ($1,397.70 per ounce). Not coincidentally, the currency value of the dollar rose. Of course the European debt in Greece, Ireland and Portugal is pretty bad right now. This is why a historic lift in gold, silver and copper prices happened.

Changes in the industry with the Federal Reserve bond buying

In the next eight months, the Federal Reserve can be spending $600 billion in bonds. This has brought on many people to start getting precious metals instead of keeping all of their paper money. Marketwatch explains that currency values are not heading down too much. There had been a .5 percent raise within the United States dollar. This was against other rival paper currencies of course. The euro, nevertheless, experienced a marked decline, thanks to bonds from Greece, Ireland and Portugal came under performance pressure.

A gold-standard once again

The ides of reinstating the gold standard is something that World Financial institution President Robert Zoellick thinks needs to be discussed. Hopefully, the G20 conference in Seoul, South Korea will be where this happens. Zoellick said, "Employing gold as an international reference point of market expectations about inflation, deflation and future currency values" could help set up a better economic yard still, reports a Financial Times piece.

James Cordier, a portfolio manager at Optionsellers.com agrees. We'll see what a global gold standard does. It could "stabilize gold and turn what is nevertheless a thin sector 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 prices also increased

They’re closer to $27 an ounce now. Meanwhile, copper prices rose to $3.96 per pound in December delivery figures.

Articles cited

Marketwatch

marketwatch.com/story/gold-retreats-silver-keeps-on-rallying-2010-11-08

Is it government manipulation – or luck?

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