Reply #7: Oil slips but gold holds above $800

[UpInArms]

http://news.yahoo.com/s/ft/20071105/bs_ft/fto110520070650281797

Oil prices retreated on Monday after hitting a record above $96 a barrel on Friday while gold held above the key $800 level amid renewed concerns about the outlook for the US economy after Citigroup (NYSE:C) became the latest investment bank to report gigantic losses related to the sub-prime crisis.

Nymex December West Texas Intermediate dropped $1.53 to $94.40 a barrel after reaching a record $96.24 during Thursday's session, while ICE December Brent slipped $1.39 to $90.69 a barrel.

Hedge funds and speculators significantly increased their net long position in the crude market (betting on further price gains) in the week to October 30 when prices hit $90.38, according to the latest data released by the Commodity Futures Trading Commission. The net long position jumped 38.5 per cent to 83,120 lots.

With huge interest in the outlook for prices and whether oil will push on to the $100 level, traders are paying close attention to any details of shifts in investor positioning.

"We seem to be getting more short-covering driving prices higher lately," said analysts at Cameron Hanover; "(Oil) prices seem destined to make an attempt on $100, but it is less certain if that will bring in fresh selling just before we get there. If longs start to liquidate, we could get a stampede for the exits."

Gold held above the $800 level at $801.55 a troy ounce after reaching a fresh 28-year high of $807.70 during Friday's session. Gold's appeal as a safe haven was in focus after citigroup became the latest bank to report losses due to the sub-prime mortgage crisis.

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Does anyone else find it interesting that they (those that attempt to justify oil's price) always talk about "adjusted for inflation" oil is cheap?

Where are the "adjusted for inflation" numbers on gold? To my calculations, gold should be around $2,500 an ounced "adjusted for inflation". Just sayin'. :eyes: