Of late, I have read a number of analysts, Jim Rogers even, who have expressed the view that gold could dip to the mid- to low $600 level. Could happen, but I think not. Already, buyers of physical gold are finding anything near $700 to be cheap and so are helping to build a floor under the monetary metal.
It was a schizophrenic day for gold and silver, which could do little right during regular trading but couldn’t be stopped in the after hours action.
On Wednesday, gold vacillated between $740 and $750 all through the Far East and early European trading. Gold struggled to tack on about $20 within two hours of the Comex open in New York, but then it was lights out for the rest of the regular trading session.
For the most part, both gold and silver got sold off early in Thursday trading in the Far East and Europe. Silver showed a little spunk just before the Comex open, but that was it. However, the moment the Comex opened, gold was smacked for about $8…and silver was knocked down about 25 cents.
Gold 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.
After bottoming at $870 at the open of London trading yesterday, gold finally decided it was time to add some value, and it moved slowly but steadily higher from there to the close of the NYMEX, after which it leveled off and cruised into a finish at $886.10/oz., up $8.80. For the week, gold gave up 4.1%.
Gold held steady from the far East through London trading on Tuesday, but once the NYMEX opened it fell like a stone, and a modest rally off of $905 was snuffed out during the Globex, as it finished at $904.40/oz., down $19.80 from Friday. Overnight, gold has continued to decline.
Gold prices have been making gains on the back of crude’s ascent and are up for the third week in a row in London trade. This from Bloomberg:
Gold advanced in London, heading for a third consecutive weekly gain, as rising crude-oil prices spurred demand for the metal as a hedge against inflation. Silver and platinum also climbed.
Crude oil traded in New York has jumped 37 percent this year and reached a record yesterday.
Gold peaked at $935 in Hong Kong, and declined from there pretty steadily, right through the NYMEX session on Thursday, before edging a bit higher in the Globex and finishing at $920.40/oz., down $11.40. Overnight, gold has edged higher.
Wonder what’s happening with the gold market lately? So has David Galland, of Casey Research. (publishers of Casey’s International Speculator) Here he offers some insights into the current state of the precious metal… and the companies that mine it.