Gold Little Changed
Jan 14th, 2009 | By Doug Casey | Category: Financial NewsGold had a very quiet day on Tuesday, following Monday’s plunge, as it never strayed as much as $10 from the $820 mark and finished close to where it began, at $820.30/oz., up 40 cents. Overnight, gold is trending higher.
Platinum fell off in the overseas markets and only gained back a little in New York, ending at $937/oz., down $15. Overnight, platinum is sharply higher.
Silver took a hit right at the New York open, falling to $10.40, but it rallied strongly from there, inching back into positive territory and holding there to close at $10.71/oz., up 9 cents. Overnight, silver has edged higher. (Click here for charts)
It was a pretty lackluster day for the precious metals, with platinum falling off, silver making a little headway, and gold spinning its wheels. There was not much from the usual suspects to provide any sense of direction, as equities were mixed and crude little changed, though gold did fight off a sharp up move by the dollar vs. the euro.
Even though gold didn’t do much, that was a welcome relief from recent trading, which has seen the yellow metal tumble 7% so far in 2009, with much of that loss having to do with unexpected strength from the US dollar.
Frank Lesh, of FuturePath Trading in Chicago summed it up by saying that, “Ultimately, the dollar is the driver … The dollar push is holding gold back. It looks like the ECB will be easing, and there won’t be any more interest-rate reductions out of the U.S.”
And the downtrend may well continue, says Tom Pawlicki, a metals analyst at MF Global (NYSE:MF), citing “weak levels of physical demand, easing in credit-market tightness, a disinflationary environment and technical factors.”
But Lesh pointed out that, “Gold is not as weak as some of the other commodities … Volatility in other markets and the geopolitical tensions are always supportive for gold. A good dip in prices is a buying opportunity.”
There’s no consensus about that, though. One analyst, UBS’s John Reade says investors should look to purchase the metal below $800, while Dennis Gartman, editor of the Gartman Letter, advises instead to buy gold should the metal rally above $890.
Advertisement
This super-safe $4.50 stock is the sleeping giant of India. Most U.S. investors think they can't buy it, but they're wrong.
I guarantee it'll post a triple-digit gain in 12 months...or your money back!
(Over the next five years, you could see 10 times that amount... maybe more)
Read on for details…
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.