Gold Rises to Record Close on Outlook for European, U.S. Debt

[CrackSmokeRepublican]

A lot of Commodities are getting chased up by Jew Hedge Funds, "Cheap Money", and "Scared Money" globally...  just be careful at these extremes if Asia shows a serious slowdown because then the Global "Jew SCAMS" will come crashing...--CSR

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Gold Rises to Record Close on Outlook for European, U.S. Debt


By Pham-Duy Nguye

Dec. 31 (Bloomberg) -- Gold rose to a record closing price of $1,421.40 an ounce, capping the 10th straight annual gain, on demand for a haven from mounting sovereign debt. Silver posted the biggest yearly advance since 1979.

Gold futures rallied 30 percent this year, climbing to an intraday record $1,432.50 an ounce on Dec. 7, amid Europe's debt woes. The Federal Reserve kept U.S. borrowing costs low and purchased bonds to help revive the economy. In 2010, silver jumped 84 percent, the second-biggest gain among 19 raw materials in the Thomson Reuters/Jefferies CRB Index.

"Gold has done so well this year because government activity indicates record deficits, low interest rates and an obvious lack of fiscal discipline," said Tom Winmill, who manages the Midas Fund in New York. "The U.S. monetary policy will lead to a devaluation in the dollar, and all eyes are focused on the next default in the European community."

On the Comex in New York, gold futures for February delivery closed up $15.50, or 1.1 percent, at the 1:42 p.m. settlement.

Gold priced in euros, British pounds and Swiss francs rose to all-time highs this year as the European Union bailed out Greece and Ireland. Holdings in exchange-traded products backed by bullion gained 17 percent, and demand for gold coins surged.

"Gold's rally will continue next year as inflation pressures continue to build and currencies remain weak," said Li Ning, an analyst at China International Futures (Shanghai) Co. "The global economy is recovering, but we're not completely out of the woods, and gold's safe-haven status will increase investment demand."

Silver Rally

Silver futures for March delivery rose 42.4 cents, or 1.4 percent, to $30.937 an ounce. Earlier, the price reached $30.975, extending a rally to the highest since March 1980.

Only cotton posted a bigger annual increase among components in the CRB. The gauge, reflecting prices of energy, metals and crops, has topped gains in stocks, bonds and the dollar.

"Commodities will do well along with other risk-asset classes," said Aaron Gurwitz,    the chief investment officer at Barclays Wealth in New York, which manages about $250 billion. "The fastest-growing economies are very commodity-intensive. Commodities will be under upward price pressure. We like stuff that is used to make things or feed people, like copper, oil and soybeans."

Silver futures reached a record $50.35 in 1980, a year after the Hunt brothers tried to corner the market.

Palladium futures for March delivery rose $17.10, or 2.2 percent, to $803.30 an ounce on the New York Mercantile Exchange. Earlier, the price reached $804.90, the highest since March 2001. The metal soared 96 percent this year after more than doubling in 2009. The commodity isn't a CRB component.

Platinum futures for April delivery rose $28.90, or 1.7 percent, to $1,778.20 an ounce. The metal gained 21 percent this year.

To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pmckiernan@bloomberg.net
Last Updated: December 31, 2010 14:47 EST

http://noir.bloomberg.com/apps/news?pid ... cfCq15hzcs

[CrackSmokeRepublican]

Dave Skarica on 2011

http://www.howestreet.com/audio/dave_sk ... 0_1231.mp3


On the flip side:

Sugar Drops 10 Percent In One Day Despite "Bullish Fundamentals"
Elliott wave analysis foresaw sugar's recent sharp near-term reversal
By Nico Isaac
Fri, 31 Dec 2010 11:00:00 ET    Email |  Print  |  RSS Feeds Generated by Elliott Wave International RSS |  My Updates    
Bookmark and share It!

Food for thought: On Thursday, December 30, sugar futures took a long walk on a short pier off a very sharp cliff edge. In case you missed it, the sweet market plunged 10% in its largest intraday percentage decline in more than a decade.

For market participants, there are only two choices when it comes to moves like these: Seeing them BEFORE they arrive -- OR -- doubling one's dose of antacids. In the case of sugar's free fall, you could practically hear the mainstream crowd chewing on their tablets of Tums.
The fact is, in the days leading up to sugar's 10% drop, the mainstream experts identified several reasons why the market's winning streak would continue unabated, including these, below:
 

    * Adverse weather: "Sugar extends rally to 30-year high on speculation that floods will cut output in Australia..." (San Francisco Chronicle)
    * Falling supply: "Tight export availability from India...have bolstered prices." (Economic Times)
    * High demand: "Sugar futures gain on signs that supplies from Brazil won't be enough to meet demand. Prices may rise as there is no sugar in the market. Who would want to sell now with the fundamentals so bullish?" (Bloomberg)

Well, someone did want to sell -- despite the superfluity of the supposedly bullish factors.

http://www.elliottwave.com/freeupdates/ ... tals-.aspx