Gold Hits Highest Price Since Jan 1980 as Dollar Continues its Crash Lower

By: Gold_Investments

Gold
Gold continued it's recent surge on Thursday and rose a further 1.5%.
Gold futures for December delivery rose $10.40, or 1.4%, to $739.90 an ounce which is a new 27 year high.
Earlier gold rose to $746.50, the highest for a most-active contract since Jan. 22, 1980, the day after the metal reached a record $873 an ounce.

The gold price continues to surge due to record low dollar prices, record high oil prices and increasing concern regarding the health of the world's largest economy and increasing financial systemic risk.
Gold may succumb to profit taking in the coming days as we are slightly overbought in the short term. While consolidation is likely we believe gold will again reach $800 plus prices by year end.

Gold is one of the top performing assets of recent years and has risen 16% so far in 2007 and is on course for its seventh straight annual gain.

So far this quarter gold has rallied 13.6% in USD, from $648 to $736 USD.
So far this quarter gold has rallied 13.2% in GBP, from £323 GBP to £365.50 GBP.
So far this quarter gold has rallied 9.4% in EUR, from €479 EUR to €524 EUR.

Forex and Gold
The USD hit a new all time low against the euro at 1.4119 and analysts see 1.45 at the next level of resistance.
The USD has fallen to a new all time low mark on the US Dollar Index at 78.45.
Fed Chairman, Ben Bernanke's comments to Congress that he sees continuing housing market weakness and more sub-prime delinquencies, did not help the ailing dollar.

Silver
Spot silver is trading at $13.45/13.47 (1200 GMT).
Silver continues to play catch up with gold and is likely to outperform gold in the short, medium and maybe even the long term.

PGMs
Platinum was trading at $1332/1336 (1200 GMT).
Spot palladium was trading at $338/343 an ounce (1215 GMT).

Oil
Oil prices eased Friday after New York crude hit a new record 84.10 dollars per barrel Thursday on fears a storm could threaten energy facilities in the US Gulf of Mexico.

The Association for the Study of Peak Oil and Gas conference continues in Cork, Ireland. Ronald Oxburgh, the British lord and geologist who is the former head of Shell U.K., one of the world's biggest oil companies, looked like something of a prophet with prices surging to new highs. He said oil prices could hit $150 as supplies fail to keep pace with soaring demand. Another speaker, CIBC World Markets chief economist Jeff Rubin, predicted prices of "around $100 a barrel by the end of next year." Talisman Energy chief executive officer Jim Buckee talked about rapidly declining production from once-prolific and seemingly stalwart oil fields.

With two barrels of oil being consumed for every one barrel found, there can be little doubt that the era of cheap energy is well and truly over.

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