Precious Metals Eke Out Minor Gains
Jun 10th, 2009 | By Doug Casey | Category: Gold MarketGold had another pretty blah day on Tuesday, rising early in the Hong Kong session, falling below $950 at the mid-point of London trading, bouncing back over $960 by mid-morning, then dropping back to $955 and hugging that mark through the rest of the day, to finish at $954.60/oz., up $4.00. Overnight, gold is trending higher.
Platinum was off more than $20 in Hong Kong, but turned around and climbed slowly back to $1250 by the New York open, then stuck closely to the mark all day, ending at $1249, up $7. Overnight, platinum is sharply higher.
Silver bottomed below $14.80 early in Hong Kong, then shot higher to the Comex open, peaking there at $15.30, before settling back to $15.20 and remaining glued to the mark, closing at $15.22, up 33 cents. Overnight, silver is pushing higher. (Click here for charts)
The precious metals posted a mirror image of the previous day’s action yesterday, essentially just winning back the same small patch of ground they gave up on Monday.
That might have been expected as the usual suspects provided support, with the dollar sliding and oil rallying, although considering the magnitude of the buck’s drop one might have wished for a bit more in the way of gains.
“Metal market fundamentals are not showing signs of dramatic change, so investors are more focused on movements of the dollar and oil prices,” wrote analysts led by Alex Heath at RBC Capital Markets.
Indeed, the precious metals, especially gold, appear to be drifting around, waiting for something of consequence to happen to either kick start them higher, or send them into a tailspin.
There is probably some lingering pressure being exerted by the spectre of an IMF gold sale. International Monetary Fund chief Dominique Strauss-Kahn said on May 27 that Congress should decide within days whether to support the partial sale of the IMF’s gold reserves.
The IMF’s board has already approved plans to sell nearly 13 million ounces of bullion. Next the proposal needs the approval of Congress, and then of other member countries. Congress has always balked at similar proposals in the past, but this time, in the end, it is expected to go through.
Source: Precious Metals Eke Out Minor Gains
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