Presumably $USD will be used by the Chinese authorities to replace the massive drop in export revenues due to a beleaguered US consumer. That will knock down the $USD relative to the Yuan, and ought to be a driver that lifts the $GOLD price.

$GOLD at 7:15am ET today is trading at 753.30, which is up +19.10/oz.

Spot prices 7:28am ET for gold, palladium, platinum and silver (vs [1] 6:30am today and [2] the Friday close) are, respectively: 752.22 (754.18) (734); 224 (224) (222); 872 (872) (852); and 10.32 (10.41) (10.01).

Copper and Nickel prices are much stronger, which is a driver for higher share prices for the base metal miners, which itself a driver for the share prices of the precious metal miners.

Earlier Friday, the Asia-Pacific markets had a strong rally: Japan’s Nikkei 225 (+5.81% to 9081.4); India’s Sensex BSE 30 (+5.74% to 10536.2); Australia (+1.13% to 4060.0); Shanghai (+7.27% to 1874.8); and Hong Kong (+3.52% to 14744.6).

In Europe at mid-day, the equity markets are also rallying, but well off their earlier highs. The price at 7:18am ET (vs 6:31am): French CAC +2.94% (+3.65%); German DAX +3.00% (+3.76%); and UK FTSE +2.77% (+3.46%).

The $WTIC Crude Oil is up +3.34/bbl to 64.38.

The Euro contract is about +1.25% stronger at 128.92, while the $USD is down -0.86% to 85.71.

The DJIA futures are up +131 to 9127, but are off their highs of 9208 at 5:30am.

---

ADDENDUM

Here is an interesting article today from Australia. This is proof of concept of the opinion I shared with readers that falling metal and precious metal prices would cause mining companies to shut down mines, and that the credit crunch among bankers would jeopardize new production coming on-stream. These factors would serve to drive prices higher so that the financially strongest mining and exploration companies would become predators.

Presently I have an opportunity to package $10 million in high risk capital to finance at ridiculously low prices a pool of several once-bankable mining projects in Canada that will become profitable producers. If there is interest, accredited investors can contact me at bill [at] caratrading.com.

Here is the Aussie article from Dryblower:

It happened so quickly that most of our readers were probably so busy watching the Cup and the US election that they missed the astonishing flow of news, which was certainly not confined to Australia.

In Canada, an already long list of mine closures and construction delays saw the addition of Thompson Creek Metals postponing its Davidson molybdenum project, Birch Mountain Resources slipping into insolvency, HudBay Minerals canning its Fenix nickel project in Guatemala, and Tahera Diamond failing to sell its Jericho mine in Nunavet.

In Zimbabwe, Metallon Gold closed five mines because the country's Reserve Bank has failed to pay for gold compulsorily delivered to it – a case of government theft of the first order.

In Peru, Inca Pacific delayed its Magistral copper and molybdenum project, along with two proposed iron ore mines of Strike Resources.

In Venezuela, the rotten government of that country has seized control of the Las Cristinas gold mine from its Canadian owner, Crystallex.

In Russia, the country's richest man, Oleg Deripaska, has been forced to cancel the float of his Strikeforce Mining and seek a government financial bailout.

The list goes on, with Dryblower's readers hardly needing reminding that it is longest of all in Australia where companies such as Fortescue, Mt Gibson, Consolidated Minerals, Alliance Resources, CBH Resources, Dragon Mining, Brockman and Stonehenge Metals put assets on ice last week.

It might be a slight exaggeration but if last week's pace of closure and delay was kept up for a month there would be a global shortage of mothballs.

The silver lining, if it is possible to imagine one at such a grim time, is that the speed of events means that most of the damage should be done by Christmas – hence the Dryblower's wish that we get there a.s.a.p.

---

---

Links & Charts

---

International Economics Review

US Economic Calendar.

---

International Equity Markets Review

Europe

Here is the latest session data for the bourses of Europe.

---

Here is the latest session data for the London stock exchange FTSE.

---

Here is the latest session data for the German DAX.

---

Here is the latest session data for the French CAC 40.

---

Here is the latest session data for the Milan Italy stock exchange MIBTEL.

---

Here is the latest session data for the Swiss market index.

---

Asia-Pacific

Here is the latest session data for the Asia-Pacific stock exchanges.

---

Here is the latest chart for the Japanese Nikkei 225 index.

---

Here is the latest chart for the Singapore index .

---

Here is the latest chart for the Shanghai Composite index .

---

Here is the latest chart for the Hong Kong Hang Seng index .

---

Here is the latest chart for the India BSE 30 index .

---

Here is the latest chart for the Australian All Ordinaries index .

---

US Equity Markets Review

DJIA (interactive) chart

NASDAQ Composite (interactive) chart

---

Oil Review

Here is the e-miNY Aug-08 Crude Oil chart.

Interactive Chart of Daily Crude Oil:

---

Gold & Precious Metals Review

Spot gold chart for the week

---

Spot silver chart for the week

---

Forex Review

Here is the chart of the week's trading in the $USD.

---