Precious Metals Advance
Apr 30th, 2009 | By Doug Casey | Category: Gold MarketGold had a lackluster but still positive day, rarely straying out of the $895-900 range all the way from Hong Kong through the Globex, and finishing at $898.30/oz., up $5.00. Overnight, gold has fallen off.
Platinum was also tightly rangebound, between $1080 and $1100, but managed to end at the high end, adding $4, to $1095. Overnight, platinum is trending higher.
Silver was dead flat until the mid-point of the London session, then pushed slowly and steadily higher through the Comex and first hour of the Globex, before easing slightly into a close at $12.80/oz., up 31 cents. Overnight, silver is sharply lower. (Click here for charts)
The precious metals all staged a comeback yesterday, with silver performing especially well and the usual suspects providing a bit of lift, with oil rising and the dollar falling against the common currency.
Also factoring in was the GDP number released yesterday.
“The abysmal GDP data for the first quarter dented the dollar and sent a fresh platoon of safe-haven buyers toward the shining shelter offered by gold,” said Kitco’s Jon Nadler.
“Some participants feel that the GDP numbers may elicit fresh actions by the Fed,” Nadler said before the bank’s pronouncement of the day (it didn’t). “Maintenance of the $900 level is still critical for gold in light of the rather anemic performance it has exhibited prior to recent days.”
It may be that the GDP report proves to be “the catalyst which moves the dollar lower and gold higher,” in the words of Brian Kelly, of Kanundrum Research.
But the technicians remain skeptical, as “the metal is expected to run into further technical resistance, with a break above $916 still required to break the current down-trend,” according to James Moore, of TheBullionDesk.com.
In company news, Barrick Gold (NYSE:ABX), the world’s largest producer, said first-quarter profit fell 28% as costs rose and prices for the precious metal declined. The company said it produced 1.76 million ounces of gold in the first quarter at a total cash cost of $484 an ounce, up from $395 a year earlier. That compares with fourth-quarter output of 2.11 million ounces at costs of $471.
“[Barrick is] moving into higher-grade material and looking to start production at lower-cost mines that will help bring down costs per ounce,” said Kerry Smith, an analyst at Haywood Securities in Toronto.
Source: Precious Metals Advance
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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.