Precious Metals Fall Ahead of Holiday
Posted on: Jul 7th, 2008 | Doug Casey | Filed under Gold Market
Gold was in positive territory right up to the New York open on Thursday, but fell off a cliff at that point, nosediving straight down from $946 to as low as $928 in the first hour of trading, rebounded past $938 in the late morning, then declined again to finish at $933.60/oz., down $11.70.
For the holiday-abbreviated week, gold was up three-quarters of one percent.
Platinum also hit the skids at the New York open, but managed to hang on slightly above the $2000 mark, ending at $2009/oz., down $46. For the week, platinum was off 1.6%.
Silver’s decline was as sharp as gold’s, but it rebounded more decisively, advancing to recover about half its lost ground and closing at $18.26/oz., down just 11 cents. For the week, silver was up a healthy 4.5%.
(Click here for charts)
The precious metals were all down as traders left their desks for the long Fourth of July weekend, but both gold and silver posted gains overall during the short week.
Rising crude prices did their part to provide support, but a slightly strengthening dollar – based on bad news that wasn’t as bad as might have been – kept the metals in check.
Even though the conventional wisdom with gold has always been to sell in May and go away, “Expectations of a quiet summer in the gold pits have been summarily dismissed as a confluence of bullish factors have led gold to rally sharply and test the high side of the recent trading range,” writes Mark O’Byrne, of Gold and Silver Investments Ltd.
O’Byrne looks for gold to rally further this summer, “as it did last year and has done most years since the inception of the gold bull market.”
Phillips agreed, saying that investment buying has made the yearly “doldrums for gold, a vigorous season of its own,” since “global macro-economic and currency markets … look awful with little effective action going on to rectify matters.”
And Peter Spina, of GoldSeek.com says confidently that, “Gold will continue to attract increasing monetary demand and the result will be a much higher price … Sub-$1,000 gold days are drawing to a close [and] by the end of this year, I would find it difficult to explain a sub-$1,000 gold price.
Source: Precious Metals Fall Ahead of Holiday
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