Precious Metals Spinning Wheels
Jun 5th, 2008 | By Doug Casey | Category: Gold MarketGold had a lackluster day, reaching only as high as $885 early in the New York session on Wednesday, then getting ground slowly down straight through the Globex to finish at $878.50/oz., down $2.80. Overnight, gold has been trending lower.
Platinum spent the day rangebound between $1980 and $2010, ending at $1991/oz., down $12. Overnight, platinum has slipped lower.
Silver dipped to $16.60 at mid-morning but then had a steeper rise than gold and held most of its gains through the Globex to close at $16.80/oz., up 3 cents. Overnight, silver has declined.
(Click here for charts)
The precious metals market clearly had trouble making up its mind which direction to head in yesterday, and settled for only modest changes with the usual suspects splitting the difference as the dollar was static and oil sank for a second straight day.
Are we in for a prolonged period of indecisiveness? Some analysts think so.
Overall, “the market trend is remaining sideways and we’ll likely stay in range during the summer months,” said James Moore, of TheBullionDesk.com.
That’s a safe bet if history is a reliable indicator, since physical gold market demand typically drops off during the summer months.
Kitco’s Jon Nadler looked out shorter term, writing that, “The next three sessions could still see stabs toward higher prices if the slew of U.S. economic statistics in the pipeline contains any potentially dollar-damaging surprises.”
However, he added that Fed Chair Ben Bernanke has now stirred the pot up a bit, noting that “the dollar dips could be contained as concerns about possible direct Fed action have now replaced the perception that the only ammunition the central bank had was in the form of words.”
Meanwhile, the real bears are looking to the oil market for guidance.
“With crude oil down and looking like it will continue to be under pressure as supplies are up and the threat of a stronger dollar looms ahead, we can expect to see precious metals on a continued downward movement,” wrote Miguel Perez-Santalla, of Heraeus Precious Metals Management in New York.
Unsurprisingly, Perez-Santalla concluded that, “Overall, things are looking bearish for the metals.”
Source: Precious Metals Spinning Wheels
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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.