Gold, Silver Up Modestly
Jun 18th, 2009 | By Doug Casey | Category: Gold MarketGold’s chart looked like it was composed by a bunch of people randomly bumping into one another on Wednesday, first rising in Hong Kong, then plummeting below $929 at the Comex open, rising again for an hour, falling for two, and finally sustaining an upward push from late morning through the Globex to post an exhausted close at $938.80/oz., up $4.00. Overnight, gold has edged lower.
Platinum drifted from a high of $1220 in Hong Kong to below $1200 at the New York open, then pushed barely back over the mark as the day went on, and ended at $1201/oz., down $15. Overnight, platinum is little changed.
Silver dropped nearly to $13.90 just before New York opened, then was steadily higher during the Comex, before leveling off through the Globex to close at $14.32/oz., up 14 cents. Overnight, silver is trending lower. (Click here for charts)
It was a mixed day for the precious metals, as gold and silver posted modest gains, while platinum continued its recent falloff. Gold likely turned its day around on the back of the slipping dollar, along with a rebound in the energy sector.
“The dollar [is] likely to provide much of gold’s short-term direction,” wrote James Moore, of TheBullionDesk.com. “We expect the current theme of dip buying to continue.” And many dips there are likely to be, considering that we are entering the summer season, traditionally a period of the doldrums for gold.
As for platinum, which dropped to a 2-week low, its recent slide is tied both to tame inflation, which reduces its appeal as a hedge, and to retreating sentiment that a rebound in industrial demand is in the cards anytime soon.
Platinum’s industrial use is largely tied to the auto industry, and Robert Bosch, the world’s largest automotive supplier, said it expects global vehicle output to drop as much as 20% this year.
“The risk remains that of seeing lower values and what appears to have become the end of de-hedging in the mining sector,” wrote Kitco’s Jon Nadler. “The automotive sector continues to go through some kind of tectonic shift. The automobile industry and market will look nothing like that of today, in five years, or less.”
Source: Gold, Silver Up Modestly
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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.