Precious Metals Continue Spinning Wheels
Jun 22nd, 2009 | By Doug Casey | Category: Gold MarketGold rounded out the week in desultory fashion on Friday, peaking only at $938 at noon, and retreating from there to close at $933.70/oz., up $1.40. For the week, gold was off half a percent.
Platinum was locked in again yesterday, rarely straying from a range between $1205 and $1210 all day long, ending at the bottom at $1205/oz., up $4. For the week, platinum lost 3.6%.
Silver started the day up in Hong Kong trading, and rose to a peak of $14.35 right at the noon hour, but then slipped through the rest of the Comex and went flat on the Globex, closing at $14.19/oz., unchanged. For the week, silver skidded 4.3%. (Click here for charts)
Another day of so little movement for the precious metals that silver didn’t even budge in the end, while gold and platinum moved fractionally higher.
Gold might have been expected to gain a little traction with the dollar on the decline for the day, but it didn’t happen. Possibly declining oil prices played in, or perhaps the early summer traders are just listless.
The loss for the week may have been very small, but nevertheless gold was down for the third week in a row, the metal’s longest losing streak in two months.
Gold “is likely to find further scaled-down support as investor dip-buying continues,” commented James Moore, of TheBullionDesk.com. But short-term, “gold may look to spend some time consolidating as traders assess developments in the global economies.”
Moore added, with Sherlockian insight, that the financial markets as a whole are “lacking clear direction.”
Reading the technical tea leaves, “The gold market has been in a tight, $13 trading range for the past five trading days and appears technically anemic,” said Ralph Preston, of Heritage West Futures in San Diego. “With this week’s consumer-price index and producer-price index reports indicating a subdued inflation rate, a dip below $927 an ounce hints at a drop back down to $900 an ounce support level in the coming week.”
And “Platinum-group metals prices continue to consolidate around their recent lower levels, supported by further inflows into the physically backed ETPs,” wrote Suki Cooper of Barclay’s.
Source: Precious Metals Continue Spinning Wheels
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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.