Monday, June 9, 2008

Does gold, commodities surge signal war?

Commentary: Gold bug sees impending attack on Iran

"NEW YORK (MarketWatch) -- Bears were blindsided by the past week's sudden spike in gold and commodities. But gold bugs have an explanation: the world smells war in the Middle East, specifically, an attack on Iran......

One LeMetropoleCafe contributor formulated the issue like this: "Today's fantastic, 1979-style action, with gold up $23.50 in the Comex regular session (and more in the after market) was of course matched by events in other markets, notably grain and oil. All have fundamental reasons for strength: but sudden moves of this magnitude need more explanation."

And another contributor offered the probable explanation: "To all; this smells like war to me. Oil has rallied $17 in 24 hours to new all-time highs. Diesel is currently locked "up limit". The equity markets are faltering badly. CNBC as usual has nothing but candy a---d explanations of these market movements. Nothing in today's environment has any logical explanation. I smell war."

Wall Street hates having to think about politics, much less foreign affairs. But around the world, especially in potential war zones, people do think about them.
They also think about gold

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