Precious Metals Rally
Aug 7th, 2008 | By Doug Casey | Category: Financial News, Gold MarketIt was an good day for the precious metals Wednesday as gold and silver rebounded from their losses on the previous day, while platinum posted its second straight winning session.
Gold traded relatively flat for most of the day, edging down during NYMEX trading to an intraday low of $872.60/oz. Prices recovered during electronic trading, however, to rise $5.50, at $879.00/oz. Overnight, gold rose higher.
Platinum posted strong gains through trading in the Far East and Zurich, but dropped at the opening of the NYMEX. The metal ended at $1585/oz., a gain of $30. Platinum trended up slightly overnight.
Silver recovered from its Tuesday losses as prices rose during trading in the Far East and London. While the metal dipped during trading in New York, it still gained $0.13 on the day to close at $16.54/oz. Overnight, silver posted solid gains.
(Click here for charts)
The rise in the precious metals came despite opposition from slumping oil prices and a rising dollar.
Some support for gold may have come from the Fed’s decision Tuesday to hold interest rates at 2%. Had the Fed chosen to raise interest rates and take an aggressive attitude to combating inflation, gold prices might have suffered.
According to Peter Grant of USAGOLD-Centennial Precious Metals, “inflationary pressures are going to remain stubbornly high, despite the pullback in commodity prices.”
He continued that “the best way to protect yourself against a weaker dollar and the resulting inflation, along with persistent risks to the banking system, is to own physical gold.”
Mark O’Byrne of Gold and Silver Instruments Ltd. agreed that while gold may go down in the short run, “gold’s long-term fundamentals remain sound.”
Source: Precious Metals Rally
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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.