Dollar inches higher as Gold plummets
NEW YORK (CNNMoney.com) -- Gold prices tumbled Wednesday, as the dollar regained strength, to sink nearly $100 below its record high set Monday - leaving some traders wondering if this is the beginning of the end for gold's impressive run.
COMEX gold for April delivery fell $59 to settle at $945.30 an ounce Wednesday. Gold had set an intraday record of $1033.90 Monday.
Gold began to slide shortly after the Federal Reserve cut interest rates Tuesday by 3/4 of a percentage point, instead of the full percentage point that some market participants had expected.
The dollar, which has hit a series of record lows, began to advance against the euro in response to the Fed's announcement. Normally, interest rate cuts depress the value of the dollar. However, since the cut was less aggressive than many expected, the greenback benefited.
"It looked like the sky would fall, which is why we got up to those record levels Monday," said Jon Nadler, senior analyst at Kitco Bullion Dealers in Montreal. "But when the dollar started a bit of a gain this morning, people pulled the trigger across the commodity board."
Gold is priced in dollars, making it an attractive investment for overseas buyers. But if the dollar begins to strengthen, investors from overseas markets are more likely to sell their gold.
Moreover, gold's reputation as a safe-haven investment, one that holds value in times of economic volatility, contributed to the metal's record-breaking run.
'A major shift in psychology'
Buying gold and other commodities like oil and wheat is seen by many as a way to hedge against inflation, which has also helped support the gold market recently.
As the dollar continues to post gains against the euro, some analysts think gold is heading south after growing nearly 40-fold since its trough of $253 in August 1999.
"If gold drops below $915, it will represent a major shift in psychology," said Nadler, who believes gold could fall to about $850 in the next week.
With lower mortgage resets, the upcoming elections - which tend to boost the dollar - and the coming seasonal lull for gold, Nadler sees gold slipping to around $650 to $750 in the summer.
After 50 Years...
Some 250 pieces of original Disney animation art that wound up lying in a janitor's closet at Chiba University in Japan for nearly a half century are due to be returned to the Walt Disney Co. after being rediscovered. In return, Disney has agreed to provide high-resolution digital copies of the artworks and $1 million to be used by the university to further studies in animation art. Items in the collection had originally been selected by Walt Disney himself to illustrate both the history of animation and its processes.
It includes artwork from the 1932 short Flowers and Trees, Disney's first animated film in Technicolor. Since the exhibit was also intended to promote the Japanese opening of Sleeping Beauty, a large portion of the material focuses on that film, but there are also cels and background paintings from such movies as Fantasia, Bambi, and Cinderella. "There is no way to put a price on these works -- they represent our artistic heritage," Lella Smith, creative director of the Disney Animation Research Library, told the New York Times. "That said, their value as archival materials for study and research is very high."
eMusic: Apple's bundled-music
Apple is in for a fierce legal fight should it ever release a device that offers all-you-can-eat music, according to David Pakman, CEO of rival digital music service eMusic.
"It smells like classic Sherman Antitrust Act to me," Pakman said. "I only know what I've read but the plan sounds very similar to the tying practices Microsoft used with Windows/Explorer. And Microsoft is still paying the penalties for that one."
The Financial Times reported Tuesday that Apple is in talks with the four largest record labels about offering a device with access to the entire iTunes music library. A source close to the negotiations confirmed the report in an interview with CNET News.com and said the offering would be free initially but device owners would later be charged subscription fees.
The talks are preliminary and no agreements have been reached, the source said. That hasn't stopped some of Apple's competitors and antitrust lawyers from sounding alarms.
Pakman says Apple is following Microsoft's lead. In 1998 the U.S. Department of Justice filed a lawsuit accusing Microsoft of monopolistic practices by bundling Internet Explorer with its Windows operating system. The case was settled in 2001. In that case Microsoft had monopolistic position in operating systems with Windows, the government charged. The company achieved dominance in browsers by forcing Windows buyers to use Microsoft Explorer.
The parallel is that Apple is forcing people who buy this device with preloaded music to buy its music, Pakman argues.
An Apple spokeswoman said the company doesn't comment on rumor or speculation.
Critics say that Apple, which sells 70 percent of all digital music devices, could use its overwhelming market share to wall out competitors. No other music services--download or subscription--could sell songs to such a device. Music listeners wouldn't need to get their music anywhere else. Competition among digital music retailers would suffer, said Pakman.
Such a plan "would produce a long and drawn out fight in both the U.S. and European courts," Pakman said.
What's the difference between a device that bundles music and the relationship between iTunes and iPod? Weren't they tied together?
The answer is yes and they have been challenged in U.S. and European courts. A year ago, two separate lawsuits, which have now been consolidated, accused Apple of unfair competition, maintenance of a monopoly power and "unlawful tying." That case and a similar one, Black vs. Apple, are pending, according to documents Apple filed with the Securities and Exchange Commission.
In France, a consumer group has alleged that Apple has violated that country's consumer laws by failing to mention that the iPod is "allegedly not compatible with music from online music services other than the iTunes store" records show.
Maxwell Blecher, an antitrust expert with the Los Angeles firm of Blecher & Collins, agreed that Apple could face legal challenges for bundling if other music vendors are indeed prevented from distributing songs to such a gadget. "Apple is going to argue that they compete with lots of other similar devices," Blecher said. "You have to look at whether there are exclusionary aspects or conduct. In that debate lays the outcome of any lawsuit."
Universal Music Group has already signed a deal with Nokia to enable buyers of some of its devices to gain access to all of Universal Music's library. The music industry source said that UMG is in talks with several other handheld manufacturers as well. But no handheld maker has struck a deal with all four of the top music companies. Apple could be the first.
The life of College Girls
Nepali Army
Madhesi youths have given a cold response to the Nepali Army (NA)'s recent recruitment in Sarlahi district, the heart of Madhes.
Of the 1,733 applications received for 953 rank and file at the NA's local Arjunban Battalion at Nawalpur recently, only 193 (11.1 percent) were from Madhesis.
The figure is in sharp contrast to Madhesi leaders' claims that the NA was imposing an "unofficial ban" on Madhesis seeking to join the national army. One of the key demands of the tarai parties during the last Madhes movement was group induction of Madhesis into the NA, and other state mechanisms.
Besides Madhesi applicants, 171 were from indigenous groups (Tharu and Danuwar) and another 468 were Janjati. Likewise, 61 Pahade Dalit youths and 840 Brahmin and Chhetri had applied for the openings, according to an NA source.
An army official said, "As very few Madhesis applied for the posts, the number selected is automatically low."
According to the results published Wednesday, the battalion selected a total of 953 men for training, including 23 Madhesis.
Similar is the picture at NA Headquarters. Out of 4,993 applicants received recently for officer level openings, only 76 (approximately 1.5 percent) were from Madhesis. Apart from Madhesis, 110 Pahade Dalit candidates have also applied. Here also, 3,883 (over 86 percent) applicants were Brahmin/Chhetri. The final results here are still awaited.
Expert on Madhes issues Bhaskar Gautam terms this a "natural tendency" as there were few Madhesis in NA posts in the past.
"As most semi-literate Nepalis often follow in the callings of their seniors, Madhesi youths cannot be any exception since their seniors were not in the NA," he opines. He further says that the Madhesi parties, which are raising the issue now, should encourage Madhesi youths to join the army.
Students
Bunking classes has become a common phenomenon among today's youngsters. They enjoy hanging out with their friends without the knowledge of their parents and teachers. It's a usual sight to encounter youngsters in college uniforms at theaters, discotheques and market places these days. It is a pity that such a valuable time is being wasted and most parents don't have an idea of what their children are doing at educational institutions.
Having witnessed such 'freak' culture among our youth, I am greatly disturbed. Why do students love to bunk classes? Are there any external factors that prompt them to take such bad habits?
I strongly feel that the environment at college is a crucial factor responsible for such a situation. Students usually don't want to miss classes. Majority of students seemingly avoid classes which are least interactive and mundane with long and boring lectures.
Unfortunately, major educational institutions have failed to make a scrutinized observation of the growing culture of bunking classes among students. Helpless, the institutions rather find it easy to blame students branding them as 'undisciplined lot'. Nowhere have I ever heard educational institutions conducting workshops on the issue of 'freak' culture among youth. They continue imposing traditional teaching styles without discussing modern pedagogy.
I also have a sense that teachers and students are gradually failing to maintain their amicable relationship. The teacher-student bond plays another significant part in teaching and learning. Several instances suggest that students' irregularities are largely attributed to the cold relationship between students and teachers. With growing commercialization of education, emotional relation between teachers and students is petering out.
Alarmingly, educational institutions have been dealing with students as if they are mere commodities. And students never assume an educational institution as a temple of learning but a place for amusement.
Apart from this, majority of educational institutions turn a deaf ear to the genuine suggestions and demands put forth by students. I have noticed most of the educational institutions put their academic course as a priority, whereas sports, music, workshops and many other courses, which in fact help students build their physical and mental health, are largely ignored. All the institutions are obsessed with good percentage at the examinations. They all need is 100 percent result in the board exams. They want their students read, read and just read. But the institutions have failed to understand the fact that extra-curricular activities in fact enhance students' perception.
Aaha Gold Cup in Pokhara
Nepal Police Club (NPC) outfought Armed Police Force (APF) Club 2-0 in a battle of the police to lift the Sixth Aaha Gold Cup on Saturday at the Pokhara Stadium. The league champion also bagged a cash prize of Rs 100,000 along with the prestigious trophy to its name while APF had to make do with Rs 50,000.
The thrilling and the fitting final to the tournament went to the extra-time after both sides failed to score in the normal time. Jumanu Rai had the best chance to make the breakthrough in the normal period but APF's Nar Kumar Rai cleared his well-timed header off the line to keep his side in the final.
NPC deservedly opened the scoring with just a minute into the first half of extra-time. Again it was Ananta Thapa, who stepped up to the plate when his side needed him big time to put NPC ahead. Ananta caught APF goalie Chandan Sarkar well out of his position with a quick freekick from the edge of the penalty box, much to the disbelief of APF defenders and the goalkeeper. Chandan replaced APF's first choice goalkeeper Samit Raj Bhandari after Samit broke his finger in the opening match but Chandan's campaign had no fairytale ending.
NPC then sealed the final and the title through Jumanu Rai from the spot-kick in the 21st minute of the extra period. NPC was awarded the penalty kick after Bhola Silwal was brought down inside the box by APF defender Ratna Kaji Maharjan.
