Precious Metals All Trade Tightly
Jan 28th, 2009 | By Doug Casey | Category: Financial NewsGold held above $905 until late in the Hong Kong session on Tuesday, dropped off in London trading, and remained rangebound between $895 and $900 virtually all day, finishing at $898.00/oz., down $4.30. Overnight, gold is sharply lower.
Platinum sank from late in Hong Kong straight through to mid-morning, where it bottomed below $930 before rallying back past $950 just after noon, then went flat from there, ending at $945/oz., down $14. Overnight, platinum is flat.
Silver fluctuated from just below $11.90 to just above $12.10 all day, with lots of rallies and retreats, closing finally on an upmove at $12.05/oz., up 5 cents. Overnight, silver is little changed. (Click here for charts)
It was a second straight breather of a day for the precious metals, as the market continues to digest last week’s strong move higher.
The usual suspects weren’t particularly supportive, with equities erratic, oil slumping again, and the dollar, though it finished down vs. the euro, regaining much of the ground it lost early in the session.
Whither gold goes from its breach of the $900 barrier is the question of the day, with Matt Zeman, of LaSalle Futures Group in Chicago, noting that, “You’re seeing some selling after the run-up from $800,” and, “You’re going to see buyers continue to come into the market on dips.”
“The metal appears to be well-supported as the lack of alternatives continues to motivate investment.” said Kitco’s Jon Nadler. But, “The metal’s immediate task is to attempt to maintain [$900] and perhaps build upon it before it can embark on a journey to higher ground,” he added.
Some, though, are looking well past that. The next threshold for gold is the $930 mark, in the opinion of Mark O’Byrne, of Gold & Silver Investments.
“A daily or weekly close above that level would likely lead to gold retesting the psychologically important mark of $1,000 an ounce again,” O’Byrne wrote.
And Zeman concluded his analysis by remarking that, “You will have people buying gold with the gut feeling that there is still a lot of tough times ahead … All the money that went into notes and bonds is now going into gold and other hard assets because yields are ridiculously low.”
Source: Precious Metals All Trade Tightly
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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.