Gold climbed on Tuesday after data showed the U.S. manufacturing sector grew more than expected in August, lifting appetite for assets seen as higher risk, such as commodities, and boosting inflation fears.
Where are we now? Still in the Twilight Zone economy as far as we’re concerned. US stocks ended strongly on Friday. And they’re set to rise again today if Europe’s strong morning performance is anything to go by. Commodities are up too. Nymex crude oil futures are at $74.24 a barrel at writing. Gold is trading at $953.50 an ounce – not far off Friday’s one-week high.
Resource exploration stocks are notoriously volatile. Fear and greed play out in this sector like few others. Stocks tend to go irrationally high and stupidly low. And therein lies the opportunity.
Another underground investor mowing down the green shoots is Doug Casey of Casey Research. We know Doug well. He owns land in Argentina’s Salta province. And he’s a frequent visitor of Notes HQ.
As you review your investment portfolio to size up your current exposure to gold, keep one key point in mind: When it comes to profits, there’s no rush like a speculative gold rush.
Gold traded sideways through Hong Kong then shot north at the London open and remained range-bound between $951 and $953 for the rest of the day, finishing at $951.60/oz., up $3.60. For the week, gold is up 1.5%.
Gold didn’t do much through Hong Kong and London then showed some volatility in Comex trading, reaching an intraday high above $957 around 1 p.m. in New York and tumbling down from there through the Globex, finishing at its intraday low of $948.00/oz., down $3.10. Overnight, gold is little changed.
Gold got off to a slow start in Hong Kong and trended down through London but shot up around 11 a.m. in New York, hitting its intraday high near $955 two hours later. From 1 p.m. through the Globex close, the yellow metal retreated somewhat, finishing at $951.10/oz., up $2.10. Overnight, gold is trending higher.
Gold traded sideways through Hong Kong and most of London then surged up to an intraday high of $953 at around 9 a.m. in New York only to completely erase the gains less than an hour later. From 10 a.m. through the Comex close gold showed a steep downward trend but reversed course and made up most of the day’s losses on the Globex, finishing at $949.00/oz., down $0.10. Overnight, gold has moved lower.
Gold had another uneventful day. The slight downward trend that developed in London was erased before 10 a.m. on the Comex and the yellow metal stayed flat from there, finishing near where it started, at $937.70/oz., up $0.70. For the week, gold is up 2.7%.