More of the Same Panic and Fear; Gold Rallies to Yet Another Record High

Markets are once again back under pressure after Tuesday’s equity market gains were entirely wiped out (9th worst point drop on record for Dow). Fear and panic remain firmly in control, and gold prices continue to soar to record highs beyond $1800.

Gold hits another record high Precious metal seen as a safe haven

NEW YORK/LONDON — Gold climbed to a third record in a row Wednesday, extending its biggest rally since 2008, setting a high over $1,800 an ounce.
Bullion rose as much as three per cent Wednesday and is up seven per cent this week.
It’s up 20 per cent since June, having broken cleanly above technical resistance from a near three-year trend-channel and putting its ratio to the S&P-500 stock index at the highest since 1988.
But that ratio remains far below its peaks of 1980 and the 1930s, and gold is still below its inflation-adjusted high of nearly $2,500.

News Analysis: Experts see mixed effects of U.S. rating downgrade on Europe

BRUSSELS, Aug. 10 (Xinhua) -- As European stock markets suffered considerable losses following the downgrade of U.S. credit rating last Friday, experts said that concerns of the debt problem on both sides of the Atlantic could make life harder for highly-indebted countries in Europe, while some still saw a positive effect.

Oil down more than 6 pct after US credit downgrade

August 08, 2011 — Oil's plunge to its lowest price of the year should provide Americans with some relief at the pump. But that may not be enough to calm their fears about the economy.

Benchmark West Texas Intermediate crude fell 6.4 percent, to settle at $81.31 per barrel on the New York Mercantile Exchange Monday. That was the lowest settlement price of the year for crude, which is down about 30 percent from its high in April.

Crude's falling price means lower costs in many parts of the U.S. economy. Airlines pay less for fuel, the price of plastics can fall and motorists see pump prices ease. But when the economy looks weak, consumers keep a tighter grip on the wallets, and won't necessarily spend more, even when energy costs are falling.
Worries about jobs, incomes and home values will overshadow falling gas prices, for example. Some analysts believe consumers and businesses will tuck money they don't spend on gas and diesel into savings until there is more clarity about where the economy is headed.