Gold Hits New Record As Heatmapped Dollar Drubbing Continues, BOJ Approaches Reintervention Time

Tyler Durden's picture

The perfectly inverse trade of dollar vs gold continues to reach new extremes. Earlier today, spot gold just hit a fresh all time high of $1,317, once again proving that all that inflection point chasers really have no idea what they are talking about, since gold is not trading based on some regression channel, but continues to be the only way to hedge central bank profligacy. It is stunning how many experts still don't get this. As long as daily news of currency intervention bombard Bloomberg terminals around the world, this trend won't end. And neither will the pain for the dollar, which as the attached heatmaps demonstrate has received another fresh round of pain, with the EURUSD hitting 1.3765, as Europe is once again caught in a quandary of how to best punish it own currency without setting off a fresh banking crisis (the whole rock and hard place thing). Yet someone who will certainly be forced to intervene soon or else risk loosing all control is the BOJ, whose currency is now back to pre-intervention levels. Total tally: global central banks have spent tens of billions to keep the dollar low, and have failed, while all Bernanke has had to do is threaten to print another trillion and succeeded.

Gold

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Dollar heatmap

Euro heatmap

Yen heatmap

And below is FMX Connect's daily gold fix:

December Gold settled at $1309.60 per 100 troy ounces on Thursday, a net loss of $.70 for the day

December gold was up $7.40 to $1317 per 100 troy ounces as of 7:30 AM EST, this morning. The December U.S. dollar index was down .428 to 78.51. October platinum was up $13.90 to $1665.90 per 50 troy ounces. December silver was up 13.9 cents to $21.96.

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Bloomberg (Reported 10/01/2010)

“Gold climbed to a record in London and New York as investors sought an alternative to a weakening dollar. Silver traded near a 30-year high and platinum rose to the highest level in more than four months.

The dollar headed for a third weekly drop against the euro amid speculation the Federal Reserve will take additional steps to shore up the faltering U.S. recovery, and before a report forecast to show manufacturing slowed in the country. Gold usually moves inversely to the greenback, and holdings of the metal in exchange-traded products are at an all-time high.” Gold Advances to a Record as Slumping Dollar Spurs Demand From Investors

Reuters (Reported 10/01/2010)

“Gold hit record highs for a sixth successive session on Friday as the dollar fell to a six-month low against the euro, with expectations for further U.S. monetary easing driving strong demand for the precious metal.

Spot gold touched a peak of $1,317.10 and was bid at $1,315.65 an ounce at 1013 GMT (6:13 a.m. EDT), against $1,305.25 late in New York on Thursday. U.S. gold futures for December delivery rose $8.20 to $1,317.80.” Gold at record for sixth day