In yet another suprising turn of events, Gold Futures finished a full $5 higher on Monday after initially surging to just below the $800 mark in electronic trade. This was a gain of nearly $50 per ounce over last weeks low position of $749. The record high for gold is $875, reached on Jan. 21, 1980. Gold has added more than $25 an ounce since last Tuesday’s open. December gold closed at up $16.50 on the session. Gold’s hedge value was also pushed higher by the continued rise of crude oil, which topped the $93 a barrel mark in electronic trading.

Reuters quotes John Reade, head of precious metals strategy of UBS in London, as informing clients that the large long positions made him wary of recommending purchases at the current levels. “But with positioning so long in all metals — and no sign of supportive jewellery or industrial demand, a correction, when it comes, will be likely brutal,” Reade said.

With Oil closing above the $93 a barrel mark and contining its march towards the staggering $100 mark based on weather concerns in the Gulf of Mexico which forced the shutdown of about 20% of the production in Mexico. Additionally political problems in the Middle East as Turkey threatened wider attacks have many concerned as to the future price of oil climbing even higher. Light sweet crude oil for December delivery closed at $93.53 a barrel, up $1.67 over the session. Crude reached as high as $93.80 in afternoon trading, hitting yet another record high. Overall, oil continued to move closer to the inflation-adjusted record levels of $101.70, reached in April 1980.

Consequently, the US Dollar fell to a fresh record low against the Euro and also saw weakness against the British Pound and Japanese Yen. The sagging dollar was seen to be spurred downward by the rampant speculation that the Federal Reserve will cut U.S. interest rates which will also be offset by further losses in the US Stock Market.

With all these poignant economic indicators signalling a recession for the United States, the outlook is rather bleak heading into the holiday season. The fed still keeps pumping out the spin doctoring that the economy is in good shape but anybody with a set of eyes and a set of ears can look and listen for themselves and relaize that beside the fact we’re engaged in an endless war where there will be no significant victory, we are also on the verge of a true economic recession and nearing a depression.