Precious Metals Advance – Iranian, Russian Saber-rattling Cited
Jul 10th, 2008 | By Doug Casey | Category: Gold MarketGold was generally flat, bottoming at $917 just before the New York open yesterday, but after that it was mostly up, recovering from a mid-morning slump to advance from there through the Globex and finish at $928.20/oz., up $8.50. Overnight, gold has edged slightly higher.
Platinum, still the weak sister, was trapped inside a range between $1940 and $1960 all day, but at least managed to end in the upper half at $1954/oz., up $16. Overnight, platinum has pushed higher.
Silver’s chart was more nearly straight up after it bottomed at the same time as gold, as it cracked back over the $18 mark and held there to close at $18.11/oz., up 33 cents. Overnight, silver has been trending higher.
(Click here for charts)
Buyers shook off their recent lack of interest in the precious metals and drove all of them higher yesterday as the elements finally lined up in their favor, with equity markets cratering, oil stabilizing after the big selloff, and the dollar falling again.
Silver also got a boost from a surge in the industrial metals, while gold likely responded to more saber-rattling in the Middle East.
Iran emphasized the instability of the area yesterday by test firing nine missiles, including a new version of the Shahab-3, which is capable of reaching Israel.
“Speculators hearing one tilt in Iranian rhetoric but seeing quite another in its actions decided that the safer play for the moment is either not to let go of a larger part of their positions in the two commodities [gold and oil] or to perhaps buy a few additional units — just in case,” said Kitco’s Jon Nadler.
Russia also added to international tensions by saying it is “extremely disappointed” that the U.S. signed a deal to deploy part of a missile-defense system in the Czech Republic. Russia will respond appropriately, President Dmitry Medvedev said, including the possibility of military action.
Looking ahead, “With commodities as a whole in consolidation mode, gold looks set to remain under pressure in the short term,” wrote James Moore, of TheBullionDesk.com.
“However, given the mounting inflation concerns and the risk of further economic slowdown, investors will continue to look towards the traditional safe-haven assets favorably,” Moore added.
Source: Precious Metals Advance – Iranian, Russian Saber-rattling Cited
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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.