Precious Metals Move Slightly Higher
Jun 21st, 2008 | By Doug Casey | Category: Gold MarketGold rose in Hong Kong, leveled off in London, and traded rangebound through the NYMEX and Globex sessions on Friday, although it held above $900, finishing at $901.30/oz., up $3.30. For the week, gold added 3.5%.
Platinum also traded flat for most of the day, ending at $2051/oz., up $10. For the week, platinum gained 1%.
Silver rose to $17.60 at the New York open, but then declined steadily through the day, closing at $17.32/oz., unchanged. For the week, silver shot up 5%.
(Click here for charts)
It was, perhaps, another mildly disappointing day for the precious metals, as they showed only a little life despite the support offered by a sinking dollar, rising oil, and weakness in the equities markets.
Peter Spina, an analyst at GoldSeek.com, concurs, writing that “the price is not reacting as strong as one would expect as some overhead resistance around $900 is keeping a bit of a lid on an extended rally.”
Julian Phillips of Goldforecaster.com summarized the market thusly: “It was New York and COMEX that took the gold price back over $900, so long and short-term investors are behind gold’s price rise today. With their eyes on the $ and oil they took it higher. Despite the oil producers conference this Sunday and despite the removal of subsidies on oil in China, the oil price has risen $3. On top of that the $ itself became anemic and fell back over $1.56 sending gold up as it fell.
“If good news for oil doesn’t push it down what will? It seems the market doesn’t want talk, it wants action! Until it gets it, the prospects are good for gold and silver.”
$900 is obviously a resistance point for many buyers, as gold has been toying with the mark for a while now, with no sign it’s going to be decisively taken out. But some think the time may be near, and are raising their buy-in levels.
“I bought some last week and would buy again under $880,” said Adrian Day, president of Adrian Day’s Asset Management.
However, a third-quarter rally in gold may be limited by a “relatively high level of net speculative length,” wrote analysts at Deutsche Bank. Speculative long positions in Comex gold have doubled in the past year, according to the Commodity Futures Trading Commission.
Source: Precious Metals Move Slightly Higher
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