Little Setback for Gold
May 27, 2008
Gold Adjusts as Dollar Gains Ground
Gold and it's fellow precious metals regain groundagainst the Euro and other currencies, traders are watching for signs of strength. Poor economic data for Europe is slowly taking the lustre out of the Euro, just as similar economic problems diminished confidence in the dollar over the last ten months or more.
Crude oil held strong around $130, with gasoline prices at $4.00 a gallon across most of the states. Reports from this holiday weekend will give a good indication of how American drivers will react to these high costs over the rest of 2008. I suspect that usage will be down from the same weekend last year, which will be a good sign for controlling these bulbous investment driven prices.
Of course, at the root of most of our nations economic problems lies debt. In the simplest terms, personal debt weakens our economy and national debt weakens our currency. If I could be granted one wish for our country, it would be to have everyone use their economic stimulus rebates to pay down their person debt.
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