Gold and Materials go crazy when US greenback tanks hard

We continuously say buy gold , buy materials , the downtrend of USD is not done yet with the irresponsible FED.

Traders now send the usd to hell , killing every hope!

GS shows his dirty hands on Gold and Oil today

Goldman Sachs raised its six-month target price for gold from $775 to $800 this morning. “Gold continues to gain support from the structural realignment in the relationship between gold and the U.S. dollar,” as statement from the bank read, “driven mainly by rising consumer and central bank demand in the rapidly growing emerging markets.”

Goldman also predicted $85 oil by the end of 2007. In another release today, forecasters at Goldman raised their entire oil outlook through the end of 2008, predicting an average price of $85 for 2008 and a high of $95 by the beginning of 2009.

With the recover of material and energy sector, Market is doomed to test the new high 14300 for DOWS pretty soon.

Safe play would be gold and materials.

Gold’s ascent showed no signs of weakness overnight

Dollar woes pushed up the shiny stuff to $739 overnight -- a new 27-year high.

Say hi to 27 year high in Gold Price

Gold loves this environment. Following the Fed decision, gold busted through its $720 high of 2006. In fact, at $733 this morning, gold is trading at a 27-year high.

We continuously to point out that Gold will soar , soar ,soar, now here we go !!!

We should forget about the Fed Rate cut from now on

The Federal Reserve cut its key interest rate 50 basis points at 2:15 p.m. today.

Now at 4.75%, the Fed’s main lending rate has been lowered for the first time since June 2003. By choosing to chop 0.50%, Bernanke and his brood have sent a clear message: The subprime meltdown and subsequent credit crisis are truly hurting the economy.
The whole world seems to have been waiting for this cut, and now that it’s happened, few investors know what to do. The Dow shot up 240 points within minutes of the Fed’s announcement, oil’s well past the $81 mark, and the dollar index is plunging toward 78…but will it last?

No matter what we should focus on the fundamental of the stocks we are holding, forget about the remaining. I personally think the rate cut this time still not good enough to stimulate a finish of the correction.

Gold is ready to soar after Fed's meeting

Whenever we see a rate cut, Gold will break its historical high.
Let's keep an eye on that.

When Fed Cuts rate, they also have problems

They have issues to deal with the weaker and weaker dollars, cutting rate so aggressively? Inflation fight will be out of control too. It is all about timing when they cut and how do they cut that could save the economy. However, Market is market, economy is economy though. We further recommend to buy into Gold, Silver as I noticed
the dollar hit another new milestone last night. It was reported yesterday that the St. Louis Fed’s dollar reserve has dropped below 77. Well, this morning, the JPMorgan index of the nation’s currency had dropped to 79… its lowest rank in 15 years.

As if on cue, Iran announced this morning that it will conduct all its foreign currency transactions in euro or yen. The euro was trading at $1.38 this morning. Yen at 113. The pound… $2.02.

Hally Hally, let's profit from the rate cut.

Today many people have seen that Ben didn't give any clue about the rate cut which comfort with our outlook that it is not that easy to do so. ( From Yahoo :Instead, Bernanke talked about the need for countries around the globe to cooperate toward economic stability. He said "global imbalances" occur when countries run up trade deficits or produce big trade surpluses. ) The imbalance here has also been more obvious from the job roll reported recently. Japan, Germany, India, Sweden, Australia, Costa Rica and Peru are all reporting the most optimistic hiring conditions in 40 years, says the Manpower Employment Outlook Survey released today.

While these seven nations tout stellar employment conditions, countries such as the U.S., Ireland, Taiwan and China are all reporting slowing trends in the jobs market.

What shall we do? It is all in your hands.

Gold:Not just a good haven, but also a Good value investment

As I pointed out in previous note, the Gold price has been climbing steadily over the past few months above $700. Is it going to the top? Or is it going to break the $720 historical high? I think and will happy to see Gold price soars as Dollars value tanks to the historical low as FED intends to let the "dollar collapse". Once the Fed cuts the interest rate, we will see traders coming to kill the dollars, sending it to hell.And if there were ever a time for China to bail out of its ‘nuclear option’… this would be it. WOW, unbelievable! Well, what we could do is to buy a ticket into the safe harbor, (AZK:nyse, GG:nyse) will be a buy as ZZPT has done before.

Facts you gotta know: what behind the sell-off

Foreign central banks have sold $48 billion in U.S. Treasuries since late July… $32 billion in the last two weeks alone.

Coincidentally, the Chinese are in the early stages of launching a $300 billion sovereign wealth fund. What better way to raise money than selling the debt of a nation in a period of economic instability. Hmmn. Before this wave of sell-offs, China held about $900 billion in U.S. Treasuries.

The public won’t know which country has been selling its U.S. government debt until the Treasury Department releases TIC data in November.