I love Gold….and Money

Gold going down because the US dollar is getting stronger?  It’s going to be a lot longer till that happens

Market Report
Gold pares losses as Obama plans weigh on dollar

The COMEX February gold futures contract closed down $9.40Thursday at $1103.20, trading between $1088.00 and $1117.40

January 21, p.m. excerpts:
(from Reuters) –
Gold prices fell to their lowest level this year as U.S. President Barack Obama’s plans to limit banks’ risk taking dampened investor sentiment across the board. “Certainly it takes a toll on all investments products, especially commodities, since the banks were very heavily invested in the sector,” said Zachary Oxman of California-based TrendMax Futures. Oxman said that the U.S. administration’s proposal could restrict capital flow and cut profits of banks, which provide the needed liquidity for gold and commodities investors...more
(from Dow Jones) –
The president’s proposal aims at preventing commercial banks and institutions that own banks from owning and investing in hedge funds and private equity firms and limit the trading they do for their own accounts. The dollar moved to near-unchanged levels as the news sent investors back to the euro and stocks plummeted, allowing gold to recover some of its earlier losses. Dollar strength had helped send the metal below $1,100 in earlier trading as concerns over euro-zone sovereign finances and Chinese monetary tightening sapped risk tolerance…more
(from Marketwatch) –
Weighing on gold, Chinese data released Thursday showed economic growth jumped 10.7% in the fourth quarter, putting the full-year figure above forecasts. Inflation was also higher than expected, suggesting recovery is continuing but fiscal and monetary policy may need to be tightened. The “cusp of prolonged Chinese tightening,” wrote Ashraf Laidi, chief market strategist at CMC Markets, “could further erode gold’s inflation argument in the medium term.” February gold ended floor trading down 0.8%...more