Gold, Silver Edge Lower
Apr 18th, 2008 | By Doug Casey | Category: Gold MarketGold and silver edge lower, but platinum continues onward and upward.
Gold started strong, rising to $953 in Hong Kong, but encountered selling in London that took it down and then, after some gains in the first hour of the New York session on Thursday, further selling that kept it on a downtrend for the rest of the day, to finish at $939.30, down $6.20. Overnight, gold has fallen off.
Platinum had a strong day and, though it came well off its European highs, still closed at $2052/oz., up $33. Overnight, platinum is trending lower.
Silver peaked at $18.70 in London, then followed gold down, closing at $18.24, down 6 cents. Overnight, silver is slightly lower.
(Click here for charts)
One good up day does not a trend make, as gold and silver bulls found out yesterday, although platinum turned in a second straight strong performance.
The big determinators failed to provide any definitive direction for the metals, as the dollar firmed up well, after falling to a new low against the euro, while crude also pulled back from record highs.
“For the moment, $940 in gold appears supportive and the market could still aim for $960 before significant profit-taking emerges,” said Kitco’s Jon Nadler.
“The dollar’s gyrations and crude oil’s every price tick will continue to provide the overall direction for gold,” Nadler added. “Individual investors appear slightly skittish about jumping into fresh long positions at the moment and may hold back until a clearer uptrend is confirmed.”
James Moore, of TheBullionDesk.com, concurred, writing that, “Given the increased concerns about inflation, coupled with recessionary fears in the U.S. and the effect this is having on the dollar, we would look for gold to remain firm, testing towards chart resistance located at $955 and $956.”
Platinum advanced as traders concern grew over possible shortfalls in South African output because of the serious energy shortage there. Yesterday, Eskom, the country’s state-owned utility, reiterated that it will be seven years before the power supply returns to normal levels.
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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.