Gold Pokes Higher - But Silver Down and Platinum Flat
Jun 3rd, 2008 | By Doug Casey | Category: Gold MarketGold bottomed at $883 just after the open of London trading on Monday, moved higher in fits and starts until noon, then sagged from there through the Globex, finishing at $890.30/oz., up $4.20 from Friday. Overnight, gold has been trending higher.
For the second straight day, platinum was little changed, sinking in Europe, rallying in New York, then easing later in the day, ending at $2007/oz., up $1. Overnight, platinum has edged higher.
Silver was sharply higher in early London trading, peaking at $17, then fell all the way to $16.57 in New York’s second hour, before retaking some of the lost ground to close at $16.79/oz., down 8 cents. Overnight, silver is slightly higher.
(Click here for charts)
It was a nice day for gold, although platinum and silver failed to follow suit. Gold did especially well to hold on in light of the early strength in the dollar, although there was probably some disappointment that it didn’t do a better job of hanging near the $900 level when the buck weakened later in the day.
The weakness in the equity markets probably lent some flight-to-quality support.
Analysts Peter Spina took a look at the usual suspects, oil and the dollar, and didn’t find anything likely to cause a major price swing.
“The oil price has pulled back from above $130 and the U.S. dollar has recovered just over 1% [vs. the euro],” Spina wrote. “But these moves are not sufficient to cause major moves in gold, so the churning will continue until there is good cause to move strongly, one way or the other.”
Gold’s price is “currently dependent on investment demand to make it run up this season and that demand is presently quiet,” he added.
However, Kitco’s Jon Nadler noted that “gold found some old friends in Asia over the weekend — buying of the metal by jewelry fabricators became noticeable, finally.”
Chart watchers said that the 14-day relative strength index for gold futures last week dropped to 42, a signal that prices may be poised to climb.
“Physical buyers are coming back into the market,” said Matthew Zeman, a metals trader at LaSalle Futures Group in Chicago. “People are thinking it’s better to buy now at these discounted levels, than wait as it moves higher and have to buy at full price.”
Hmmm. . . Wonder what ‘full price’ might be?
Source: Gold Pokes Higher - But Silver Down and Platinum Flat
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