Marketwatch
Moming Zohu

The Federal Reserve, European Central Bank and four other central banks lowered interest rates in a coordinated effort to combat world’s deepening financial turmoil.

"Coordinated central bank aggressive interest rate cuts should lead to gold surging in value in the coming months" as "currency devaluations look increasingly likely," said Mark O’Byrne, executive director at Gold and Silver Investments.

Gold for December delivery gained $24.50, or 2.8%, to close at $906.50 an ounce on the Comex division of the New York Mercantile Exchange. It was the first time the contract topped the $900 level since Sept. 29.

The metal has climbed $73.30 from Friday’s closing level as investors snapped up the precious metal as a safe haven amid the financial turmoil.

My comment: There is more of this to come as governments panic. I was watching Bloomberg tonite and Frank Holmes from US Global Investors was on. He said his work show historically that when the printing presses are revved up that typically it takes a couple months and gold, oil, and surprisingly the NASDAQ usually rally. Franks website is excellent for commentary and research on commodity demand and supply fundamentals. I thought hey would do this and said so a while ago even before the market tanked. I do not think we have even sen half of what these politicians are capable of when it comes to debasing the currency. on that note gold stocks put in a nice rally recently and it looks like the central banks are pulling in their horns with regards to leasing out their gold.

John Polomny
The Real Deal