Techotic

Gold is still precious, don’t get me wrong, but recent price plunges in its market suggest that the economy might not be as bad as we think.

Yes we are experiencing bad housing times but production was up 0.2% in July and now with gold taking a plunge and gas prices nearly lower than $110 a barrel things are not looking so good for those who jumped into this market.

Then again there’s always a calm before the storm. Lets hope Rush was right with his predictions, but I’m not telling you to go out there and pay $800 for an ounce. But it is your choice.

Prices for the precious metal _ which touched $1,000 an ounce for the first time in March _ have plunged in recent weeks, and on Friday tumbled below $800 for the first time since late last year. It has been a sharp reversal for a bellwether of the commodities boom that only months ago seemed poised to soar to uncharted heights.

Gold’s drop Friday came as the dollar surged again, responding this time to the Federal Reserve’s report of higher-than-expected industrial output for July. The greenback’s rally comes as a slowdown among European economies weighs down the 15-nation euro, which bought $1.4672 in trading Friday, down from $1.4811 late Thursday.

The healthier dollar led traders to unload gold contracts Friday, with December futures slipping $22.40 to settle at $792.10 an ounce on the New York Mercantile Exchange. Prices earlier dipped more than $35 to $777.70, the lowest since Oct. 26, and 25 percent off the all-time trading high of $1,033.39 reached March 17.

[via money.aol]