Gold, Platinum Little Changed
Nov 26th, 2008 | By Doug Casey | Category: Financial NewsGold slumped into early London trading on Tuesday, but rallied at the New York open, gaining $25 in the first hour, to $830, but that proved the high point of the day, as it traded listlessly from there, finishing at $819.40, down $2.30. Overnight, gold has slipped lower.
Platinum traded tightly rangebound, between $850 and $860 for most of the day, just poking its head above the range at the end, to $863, down $2. Overnight, platinum has been flat.
Silver also shot higher at the Comex open, gave it all back by late morning, but then reversed field again to regain some lost ground and went flat on the Globex to close at $10.30/oz., down 27 cents. Overnight, silver is unchanged. (Click here for charts)
Trading was thin yesterday, as some undoubtedly left their desks early, ahead of Wednesday’s half-day and prior to the U.S. Thanksgiving holiday. The good news was that gold, even though it didn’t add to them, still held onto the gains of the previous two days.
The usual suspects were working at cross-purposes, as the dollar skidded against the euro but crude was off sharply and equities were all over the place before ending little changed.
Thus, whatever profit-taking occurred after gold’s four straight days of gains was fully balanced by willing buyers at this level, not surprising after the Fed indicated that it intends to throw yet more money at the credit problem.
“With the flood of liquidity, that’s going to float the boats and sink the dollar,” said Ron Goodis, of Equidex Brokerage Group in Closter, New Jersey. “Commodities look set to stage a comeback on the dollar weakness. The real strength is likely to be in gold.”
Legendary investment biker Jim Rogers concurs, saying yesterday what now appears to be baked into the cake. The buck is “going to lose its status as the world’s reserve currency,” Rogers said. “It will be devalued and it will go down a lot. These guys in Washington, they want to debase the currency.”
But the bears remain unconvinced. “We are short of gold,” said Dennis Gartman, editor of the Gartman Letter and a usually-reliable indicator of how not to bet. “We shall always sell rallies such as these that retrace as classically as this market has.” This is “nothing more than a rally in a bear market.”
Source: Gold, Platinum Little Changed
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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.