Gold futures exceeded $1,750 an ounce for the first time as the global rout in equities and commodities deepened on concern the economic slowdown will worsen after Standard & Poor’s cut the U.S. credit rating.
Gold for December delivery in New York advanced 2.5 percent to a record $1,756.80 an ounce and traded at $1,752.60 at 1:17 p.m. in Melbourne. Immediate-delivery gold rose as much as 2 percent to $1,754.63, also an all-time high…
Meanwhile, the Asian markets are getting slaughtered (Hong Kong was down more than 7% at one point, but it has bounced back a bit), while London looks for a bad day, partially fueled by the increasingly out of control riots.
What will happen tomorrow? Beats the heck out of me…could be that stocks will surge a bit as some people figure they’re beat down enough and its time to buy. Could be that Bernanke will announce right at market opening that he’s firing up the printing presses. Could be that it drops another 500 points in the first hour. We’ll have to just see. But as I keep saying – even if we dodge this bullet, we won’t dodge them all…the crash is coming, because there is simply too much debt.
One ounce of gold will now buy 350 packs of cigarettes. Smoke em if ya got em 🙂