Randomly Noted

Today’s big news isn’t retailers’ so-so improvement in August sales. We’re still in less-bad territory – eg retail sales weren’t as bad as they were the previous month, or as expected. The big story is: GOLD. It’s nearing $1,000. The December gold contract is up 5.5% since Tuesday. What’s up with gold? It seems people aren’t overly worried about inflation – this normally propels a surge in gold-buying but all signs are that inflation won’t come roaring back any time soon. Frankly, it’s the dollar which is mainly propelling the gold rally. People just aren’t comfortable with the weakening greenback and are spreading their bets by stocking up on gold. DJN colleague Matt Whittaker refers to it as “alternative-currency buying.” Effectively, people are looking for something that’s not the stock market and not the U. S. dollar. They’ve filled up on Treasurys. What’s left that’s safe and reliable? Gold. Matt wonders when buyers will take profits – at nearly $1,000 certain investing sectors will indeed sell. Tomorrow’s U.S. nonfarm payrolls data will be key, Matt notes. If it’s lousy, gold will be supported If it’s good, we may see some selling. I’ll be off tomorrow, but watching my Blackberry …