GOLD : $ 1038.30

Well, there are all kinds of reasons flying around for today's gold spike!

The Australian Central Bank raising rates, or the pricing of Crude oil in USD or the return of inflation --- take your pick.

I'm a long term Gold Bug, but have no idea why it spiked up today.

While I'm not betting that the USD will collapse tomorrow, the recent rally in equity markets does appear to be built on a shaky foundation

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Gold buyers must realise that punters, program and model based traders and short sellers covering their trades, are also playing their part in the current uptrend in Gold. So as we all wait for Gold to close above technical levels at $1040 & $1060, caution is warranted.

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The USD continues to stay oversold,as it has been for quite some time. It has not dipped below the level of 76 on the USDX thus far. I'm monitoring it closely for now.

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LINK:

Dollar's Pain Sets Up Record Setting Gold for More Gains - Futures and Commodities * US * News * Story - CNBC.com:

"Below are recent price forecasts for precious metals spot prices:
DEUTSCHE BANK—Gold will move above $1,100 an ounce during 2010, and the dollar versus the euro will hit $1.60, a level last breached in July 2008.
RBS GLOBAL BANKING & MARKETS —Gold will average $950 an ounce in 2009, to rise to $1,000 in 2010.
STANDARD CHARTERED— Bullion will average $1,050 an ounce for the fourth quarter of 2009.
BANK OF AMERICA/MERRILL LYNCH— Gold prices will hit $1,500 an ounce in 2011 when oil prices move back above $100 a barrel as emerging market growth creates shortages."

EDIT: 7 October 2009 : The Culture of Life News blog has an interesting post on this:
Secret Meeting Discussing Dumping US Dollar As Oil Currency ...

EDIT: 9 October 2009 : Jesse's Cafe Americain has an excellent note on Gold

Gold: Until the Banks Are Restrained and Balance Is Restored