Precious Metals Still Fighting Headwinds
Sep 4th, 2008 | By Doug Casey | Category: Financial News, Gold MarketGold traded in a directionless manner yesterday, remaining tightly rangebound between $790 and $808, and finishing at $800.40, down $4.50. Overnight, gold has pushed higher.
Platinum managed to push past $1400 in Hong Kong, but was unable to hold there, sliding for the better part of the day and ending just off its intraday lows at $1370/oz., down $13. Overnight, platinum is sharply higher.
Silver fell below $13 in the far East, managed to claw its way back over it in the first hour of New York trading, but hang onto the mark, sliding to close at $12.87/oz., down 18 cents. Overnight, silver has moved higher.
Although the precious metals all finished in the red, fanciers were probably somewhat relieved that the damage wasn’t worse than it turned out to be, as oil continued to slide and the dollar spent most of the day sharply higher against the euro.
Again, none of the money exiting the equities markets seems to be finding its way into gold, silver or platinum.
Ktico’s Jon Nadler, always ready with his bear claws, declared that gold “appears poised to retest the $775 zone as oil has now slipped under $108 and as dollar strength is sapping the confidence among remaining” buyers.
Even so, not all analysts are ready to throw in the towel.
UBS metals strategist John Reade said that, “There is no doubt in our mind that gold-market fundamentals are extremely supportive for the metal at the moment, but that doesn’t matter as long as the dollar is strong.”
Nadler also weighed in on the PGMs after Ford (F) and General Motors (GM) reported that domestic demand, especially for trucks, continued to plunge in August.
“We have car sales shrinking significantly on top of the problems that platinum is already having,” Nadler said. In his opinion, platinum may fall as low as $1,250, and that “is a question of hours or days, not months,” he said.
Source: Precious metals still fighting headwinds - Platinum tanking as auto orders plunge.
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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.