Gold and Silver Up
Jul 25th, 2008 | By Doug Casey | Category: Financial News, Gold MarketThe precious metals suffered mixed fates on Thursday as gold and silver ended their sharp declines of the past two days by posting modest gains, while platinum continued its freefall.
Gold inched upwards throughout the day, hitting an intraday high of $931.20/oz. during London trading. Prices dropped during NYMEX trading, but recovered during electronic trading before closing the day up $6.90, at $926.50/oz.. Overnight, gold has trended higher.
Platinum had another rough day Thursday. Although up early in trading in the Far East,prices declined steadily throughout the day, finishing below the $1,700 mark, down $37, at $1695/oz. Overnight, platinum has risen
Silver was up in early trading before dipping to an intraday low of $17.075/oz. during the NYMEX. The metal recovered, however, ending at $17.41/oz., up $0.05. Overnight, silver has climbed slightly. (Click here for charts)
Gold’s return to the black was largely the result of recovering crude prices, which finally posted gains after a week of heavy losses. This rise, along with stumbling US equities, was enough to push gold up despite opposition from gains by the dollar. Gold has closely tracked oil prices over the past week.
“The fundamentals haven’t changed for oil and gold,” wrote Ralph Preston of Heritage West Futures. “The washout in the metals has, for the most part, run its course. I’m comfortable wading back in.”
Mark O’Byrne, the executive director of Gold and Silver Instruments Ltd. agreed that gold prices will soon recover from their beating over the past few days. “This looks likely to be the last such sell-off prior to a strong rally into the autumn, as is typical,” he said.
“While gold has suffered strong selling in recent sessions, it is only working off an overbought position, and a correction and consolidation is healthy and normal,” O’Byrne added.
In company news, Newmont Mining (NYSE:NEM) posted a second quarter profit of $277 million, vs. a $2.06 billion loss in the year-ago period. That loss reflected $2.27 billion in write-downs.
Source: Gold and Silver Up
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.