Precious Metals Mixed
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Gold was steady to higher through the first hour of the New York session on Friday, then declined sharply to lose nearly $15, but then turned around and regained all the lost ground, before cruising sideways through the Globex to finish at $884.00, up $1.00.
For the week, gold rebounded from the previous week’s bloodbath to gain 3.3%.
Platinum traded within a closely-defined $50 range, but finished near the top of it, ending just off its intraday high at $2087/oz., up $66. For the week, platinum shot up 9.8%.
Silver’s early fall was even steeper than gold’s, from $17.08 in London all the way down to $16.50 at mid-morning, after which it rallied back to $16.79, off just 4 cents. For the week, silver tacked on 2.6%.
(Click here for charts)
It was nice to see the precious metals consolidate the week’s gains, even though some may have wished for a better showing on the back of a declining dollar and oil pushing to record heights.
Gold has of course underperformed crude and the euro over the past two months, and whether that is slowly beginning to change remains to be seen.
Many are just expecting sideways trading for a bit.
“We’re going to continue to go back and forth for a while yet,” said Adrian Day, of Adrian Day’s Asset Management in Annapolis, Maryland. “I’m holding, given my expectation of long-term appreciation. I don’t cancel my house insurance if I don’t expect a problem in the next few months, so I’m not selling my gold either.”
Peter Spina, of GoldSeek.com, contends that, “There are too many bullish drivers in gold to keep it subdued over the short term.”
“The U.S. dollar has failed to sustain its rally off recent lows and with the gold-oil ratio now around the 7 level, the value gold presents during this inflationary environment has brought out the bargain hunters,” Spina wrote.
And he concluded that, “Gold looks ready to march back above the $900 level over the coming weeks with present conditions sustaining.”
Meanwhile, platinum fanciers (and bears, too) have a paper way to play the metal with yesterday’s debut of exchange traded notes (ETNs) on the NYSE. E-Tracs UBS Long Platinum ETN will trade under the ticker PTM, and E-Tracs UBS Short Platinum ETN under PTD. The ETNs will be based on futures contracts and not hold the actual metal.
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Tags: , dollar, Globex, gold, Inflationary Environment, Peter Spina, platinum, precious metals, resourcesAbout the Author
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.