Gold, Silver Post Decent Gains
May 11th, 2009 | By Doug Casey | Category: Gold MarketGold moved marginally higher by the first hour of trading in New York, fell off until mid-morning, then pushed higher again but not at a very brisk clip, before going flat through the Globex to finish at $916.20/oz., up $6.20. For the week, gold was up 3.4%.
Platinum stayed primarily within the $1140 to $1150 range for the entire day, ending essentially flat at $1147, up $2. For the week, platinum added a solid 5.2%.
Silver was up and down all day in an attempt to breach the $14 barrier, and in the end closed barely short, prolonging its win streak by adding 20 cents to $13.99. For the week, silver shot up a very robust 12%. (Click here for charts)
Though platinum was flat, gold and silver both notched significant gains yesterday, with silver continuing to lead the way, as it has for the past several sessions. The usual suspects did lend some support with oil pushing higher and the dollar dropping against the euro. In fact, considering how far the dollar fell, gold bugs had to be somewhat disappointed that the metal didn’t really take off.
Analysts noted the cut in European interest rates and said that traders are now factoring an increase in inflation, and thus heightened demand for gold as a hedge, into the gold price.
About the only thing holding gold back at the moment is the possibility that the banking crisis is easing, probably a misplaced perception.
And the unemployment numbers seemed to provide no help. “The jobs data can be filed under the category ‘less bad,’ which is the theme permeating the markets,” said Brian Kelly, CEO of Kanundrum Research.
Dan Norcini, writing on jsmineset.com, took a look at the gold mining sector and found: “The mining shares are dramatically outperforming the paper gold price with the HUI and the XAU moving up into this year’s highs once again. If the HUI can maintain its current footing as of the time I write this, it is on target to put in its highest weekly closing price for this year. The XAU is similar but not quite as impressive looking as its cousin on the weekly chart. Still, the XAU is trading solidly above the 50 week moving average and has a shot at the 100 week if it can close above 143. It is appearing more and more likely that the shares are now leading bullion.”
Source: Gold, Silver Post Decent Gains
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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.