Precious Metals Come Roaring Out Of Holiday Weekend
Apr 14th, 2009 | By Doug Casey | Category: Financial NewsGold was higher in the far East on Monday, flattened out in London, but took off once New York opened and continued to rise to a peak of $900 at noon, at which point it was driven down and declined through the rest of the Comex and went flat on the Globex, finishing at $892.60/oz., up $13.40. Overnight, gold has been flat.
Platinum prolonged its recent bull run, shooting as high as $1245 in the first hour after noon in New York, then eased slightly for the rest of the day, ending at $1237/oz., up $50. Overnight, platinum is trending lower.
Silver burst higher in Hong Kong, trailed off in early London trading, then really caught fire at the New York open, going ballistic and adding over 40 cents by the second hour on the Comex, then seesawed through the rest of the day to close at $12.74/oz., up 41 cents. Overnight, silver has drifted lower. (Click here for charts)
Traders returned from the long weekend in an obvious buying mood with regard to the precious metals, as all of them posted especially strong days, with platinum leading the way.
Gold rose as the usual suspects were mixed, with equities little changed, oil dropping in price, but the dollar plunging vs. the euro.
“There’s some positioning ahead of financial results,” said Matt Zeman, of LaSalle Futures Group in Chicago, in anticipation of soon-to-be-released earnings reports from the sector. “Financials led us down this path, and they’re going to be the sector that leads us out. You might see the flight-to- quality buying in Treasuries and gold if earnings don’t meet expectations.”
This week will see first-quarter results from many financial companies, including Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), and JPMorgan Chase (NYSE:JPM), as well as General Electric (NYSE:GE) and more than 30 companies in the S&P 500 Index.
Technicians weighed in with their opinions, also, saying that gold’s gains accelerated after the price failed to close below the 200-day moving average last week. “We’re seeing some technical strength,” Zeman said. “There’s short covering now that the price held the 200-day.”
“In the past, a close below the 200-day moving average has prompted liquidation from technically driven traders,” wrote John Reade, of UBS AG (NYSE:UBS) in London. “Until this has been seen or until gold has bounced sharply from current levels, it is too soon to call an end to this correction.”
Source: Precious Metals Come Roaring Out Of Holiday Weekend
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