Precious Metals Push Higher on Middle East Tension, Technical Factors also at Work
Jul 11th, 2008 | By Doug Casey | Category: Gold MarketGold was essentially unchanged until the New York session opened yesterday, but it took off northward from there and pushed higher with only minor setbacks through the day, finishing at $946.40/oz., up $18.20. Overnight, gold has pushed higher.
Platinum had a decent day for a change, moving higher into the late morning, then trading sideways to end at $1991/oz., up $37. Overnight, platinum is sharply higher.
Silver’s chart was a lot flatter than gold’s, with no sharp moves, yet it still stayed in positive territory from the New York open on, closing at $18.29/oz., up 18 cents. Overnight, silver has been trending higher.
(Click here for charts)
That the metals did as well as they did was heartening to investors, as equities rebounded and the dollar strengthened during the day. But oil blasting higher was apparently enough of a stimulus.
And Middle Eastern instability also played in.
The Hightower Report summarized: “With a big range up extension in August gold today in the face of a minor weakness in the US Dollar, would seem to suggest that something other than classic currency related forces were serving to boost prices. Clearly ongoing geopolitical uncertainty, concern for the pace of the US economy and recent concerns of trouble in US agency issues provided the gold bugs with a host of safe haven factors to choose from. In fact, with some US Administration sources suggesting that the US wasn’t going to give Iran a pass on their ongoing violations of UN rules some traders were bracing for ongoing tensions off the Iranian situation. We also suspect that a recovery bounce in oil prices and suggestions from the Fed’s Bernanke that the markets were still being presented with ongoing turmoil, suggests that anxiety levels could remain high off a number of angles.”
There were also technical factors at work, as the push above $930 triggered chart signals to buy, according to Marty McNeill, of R.F. Lafferty Inc. in New York. “It’s a technical move,” McNeill said. “In the short term, gold is well-bid above $930 or so.”
Source: Precious Metals Push Higher on Middle East Tension, Technical Factors also at Work
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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.