Gold Flat, But Silver And Platinum Rise
Nov 19th, 2008 | By Doug Casey | Category: Financial NewsGold sagged from $740 at the London open to as low as $732 in the first hour in New York, spiked back up to $743 at the noon hour, fell back below $735 at the close of the Comex, then pushed higher on the Globex to finish a very up and down day little changed at $737.70, up $1.60. Overnight, gold is slightly lower.
Platinum bottomed at $810 right at the New York open, then inched its way higher through most of the day ending near its intraday high at $830/oz., up $28. Overnight, platinum has been flat.
Silver was near flat to the New York open, fell off 20 cents in the first hour, but then went near-vertical, adding 60 cents to peak above $9.70, eased into the Comex close, but pushed higher again on the Globex, finally closing at $9.59/oz., up 36 cents. Overnight, silver is trending lower. (Click here for charts)
It was a disappointing day for gold, as it failed to hold onto its gains, although its sister metals did well. But the usual suspects did little of note, with the dollar rising slightly and crude slipping marginally.
Silver’s performance had to be encouraging to those who favor that metal.
As the Hightower Report wrote: “The silver market clearly outperformed the gold market throughout the trading session. In fact, both silver and platinum clearly outperformed the gold market and given that the US stock market was down sharply at times and the silver market managed to hold in positive ground on the day that probably caused some silver bears a little concern. The silver market also wasn’t concerned about ongoing strength in the Dollar and a sharper than expected slide in US inflation readings.”
However, the drop in producer prices has to be of concern to anyone long any of the commodities. And gold, albeit one with special historical properties, is still a commodity.
David Rosenberg, North American economist at Merrill Lynch (NYSE:MER), put it succinctly, and very bluntly: “Inflation has very suddenly become yesterday’s story and we mean across the planet,” he said.
On the other hand, “We believe that the fall in the PPI adds to the likelihood of further interest rate” cuts by the Fed, and adds “to the influences that will weaken the dollar soon,” said Julian Phillips, editor of Gold Forecaster, and that, of course, is strongly gold-positive.
Source: Gold Flat, But Silver And Platinum Rise
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