Gold, Silver Little Changed
Apr 15th, 2009 | By Doug Casey | Category: Financial NewsGold was in positive territory until just before the New York open on Tuesday, when it dropped about $10, then proceeded to trade sideways all the way through the Comex and Globex, finishing at $889.30/oz., down $3.30. Overnight, gold has been pushing higher.
Platinum started the day down in the far East, and only prolonged its losses on a long, slow slide through the whole rest of the day, ending at its intraday low of $1203/oz., down $24. Overnight, platinum is trending higher.
Silver was down until mid-morning in New York, rallied back to break-even in listless trading, and wound up where it started at $12.73/oz., off just a penny. Overnight, silver is sharply higher. (Click here for charts)
It was another one of those blah days that have become common for the precious metals of late, as traders have been unable to find much of a sense of direction. But fanciers probably took a bit of heart from the fact that there wasn’t more damage, as the usual suspects were not generally supportive, with equities and oil down and the dollar strengthening.
Some of the flight to quality impetus may have slid away as Fed Chair Ben Bernanke said there are signs that the “sharp decline” in the economy may be easing, and President Obama said the stimulus package is beginning to “generate economic progress.”
Guess you just have to know where to look.
Inflows into SPDR Gold (NYSE:GLD) Shares have also fallen back, at least for the moment. “Further resistance [in gold prices] is expected at $900,” said James Moore, of TheBullionDesk.com. “With ETF investment demand still slow, further significant gains may be curtailed.”
More pressure was applied via an upbeat earnings report from Goldman Sachs (NYSE:GS), raising hopes that the financial crisis may have bottomed, and concurrently reducing gold’s appeal as a safe asset.
“Ostensibly positive news from the financials has lifted [stock] markets in recent days,” commented Mark O’Byrne, of Gold and Silver Investments. “But there are concerns that the positive results may have had more to do with government largesse and innovative accounting rather than any meaningful return to profitability.”
“The rest of the reporting season is unlikely to be so positive as companies and sectors not bailed out and supported by government are set to struggle which will likely see stocks under pressure again,” O’Byrne added.
Source: Gold, Silver 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.