Gold, oil crisis, and Obama’s support

- December 3rd, 2008

Gold Investing News reports gold futures were lower with falling oil prices and firm US dollar and the need for President-Elect, Obama’s support in the recent India’s terror attacks. The ‘right’ trade on the India attacks would be two-fold: long gold, short oil. Oil could suffer because the attacks could impair growth in India. As the … Continued

Gold Investing News reports gold futures were lower with falling oil prices and firm US dollar and the need for President-Elect, Obama’s support in the recent India’s terror attacks.

The ‘right’ trade on the India attacks would be two-fold: long gold, short oil. Oil could suffer because the attacks could impair growth in India. As the Indian economy is hurt by these attacks, it dampens demand even more.

Gold gets more attractive if one thinks that the terror attacks are a sign of things to come. Gold is a safety play. It is real. It also tends to move in line with crude because it is bought as a hedge against oil-led inflation.

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