DAILY COMMENTARY
February 23, 2009
The government announced that they are in negotiations with Citibank to provide them with more bailout funds. They also indicated that starting on Wednesday they would begin stress testing the banks and offering capital to those banks that require it. The result of that was a stronger dollar up 36 basis points at 86.85 and a rebound in the equity market with the Dow up 44 po
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February 20, 2009
Gold reached as high as $1,002.30 an ounce this morning before easing back on profit taking. Gold is currently trading up $13.50, above $990 an ounce. The dollar is up 58 basis points at 88.02 and oil is down $2.03 at $37.45 a barrel. The performance of gold and silver is reflective of a flight to safety. The equity market is softer with the Dow hitting a low of 7,327 before
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February 19, 2009
The metals started lower but gold quickly turned around on continued bargain basement buying and safe haven demand. Gold is up $2 in the first half-hour of trading, while silver is down $.32. The dollar is down 96 basis points at 87.04 and oil is up $1.37 at $35.99 a barrel. The equity market is higher with the Dow up 42 points.
Today, I heard analysts on CNBC today
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February 18, 2009
Gold started lower but quickly moved into positive territory trading near unchanged. Silver is up $.08 in early trading. Safe haven buying continues to support the gold market. There is also strong demand for physical gold coming from the investment sector according to Steven Platt, with Archer Financial. He said, "Safe haven buying is linked to the extraordinary lengths we
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February 17, 2009
Gold has broken away to the upside gaining $28 in early trading. It has last traded in the April contract at $970, after reaching as high as $973. Silver is up $.38 at $14.01 an ounce. Silver was $.04 higher. In other words, these metals are rising aggressively and holding onto the gains. There are a lot of people on financial talk television recommending gold as a hedge aga
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February 12, 2009
The stock market continues to reject the Administrations plan for rescuing the banks. As a result, the financial stocks are down significantly once again, dragging the Dow down 200 points at the open. Gold had been higher prior to the open but it came off $1 in reaction to the weakness in the equity market and a stronger dollar. The dollar is up 86 basis points at 86.64 on t
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February 11, 2009
Gold moved higher on safe haven buying and once it broke out above the $930 level it shot higher, gaining $26 in early trading. Gold is now above the $930 breakout zone and has penetrated minor resistance in the $940 area. The next target should be $975 to $985. $1,000 an ounce clearly is in view technically. Silver is also posting excellent gains, up $.37 in early trading.
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February 10, 2009
Gold is up $20 and silver is up $.30 in early trading after support held overnight. Support also came from stronger crude oil in anticipation of higher demand due to the fiscal stimulus in the U.S. There is also a good deal of "flight to safety buying" according to the analysts and a bounce from chart support for technical traders. Some short covering was also triggered earl
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February 09, 2009
Gold and silver both fell sharply in a profit taking pull back. Gold is trading down about $18 in early trading and silver is down $.25. Gold was on a defensive overnight as European and Asian market participants were booking profits, after gold rallied to $930 but did not penetrate that resistance level. Leonard Kaplan told Dow Jones Wire Service that gold should find suppo
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February 06, 2009
Gold started the day lower, but rebounded quickly to unchanged levels while silver gained $.24 in early trading. The dollar is down 24 basis points at 85.81 and oil is down $1.85 at $39.31 a barrel. Oil is in some serious trouble with some expecting the Saudi's or others to take serious action to increase prices.
The Dow Industrials are rallying on the rumors that Tim
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February 05, 2009
Gold and silver are both higher today with gold up $20 at the open and silver up about $.30. The metals are higher even though the dollar is up 4 basis points at 85.74 and oil is down $.24 at $40.08 a barrel. Gold saw a lot of fund buying in the European markets overnight and it got another boost in response to ECB comments on inflationary pressures picking up in the second
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February 04, 2009
Gold is up $17.50 and silver is up $.25 in early trading. Part of the reason gold is up so much is due to very weak payrolls report by ADP showing a loss of 522,000 jobs in January. Moreover, massive losses from the automobile sector, combined with job cuts are a serious problem for the overall economy. This suggests further weakness in the economy will lead to more stimulat
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February 03, 2009
Gold opened higher and then moved to about unchanged levels in the first half-hour of trading. Silver likewise was higher, but gave up the early gains on profit-taking. The dollar is down 65 basis points at 85.42 and oil is up $.40 at $40.46 a barrel. The Dow is up 29 points at 7,966.
For the first time in about eight years, the European central banks actually added
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February 02, 2009
Gold is lower this morning on profit-taking and in reaction somewhat to a strong dollar. The dollar is up 28 basis points at 86.28. Oil is a negative influence, down $1.20 at $40.50 a barrel. The equity market is lower also with the Dow down 79 points at 79.21. The month of January was the worst month on record for the Dow as it posted the biggest loss ever. In 7 out of the
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January 30, 2009
Gold and silver rose aggressively overnight. As I forecast, gold challenged resistance at the $930 level and pulled back after reaching as high as $929.30 on the key contract. Gold is likely to consolidate the gains between $900 and $930, but once it makes a breakout above $930, it will be challenging minor resistance at $940. Once it breaks out above $940, Standard Bank ana
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January 29, 2009
After a nice 200-point rally yesterday, the Dow has given up 120 points of that rally in early trading. The weakness in the equity market is due to information coming out that suggests the economy is continuing to weaken and that the worst in the economic news maybe yet to come. Concerns about economic weakness are also putting some pressure on the gold market, which has bee
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January 28, 2009
Gold is down again this morning, as there seems to be increased risk appetite for equities. That took away some of the safe haven demand for gold and left gold somewhat on the defensive this morning. Technical considerations may also be involved as gold is sliding back toward the level from which it made a breakout higher on Friday. In early trading, gold is down $6 and silv
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January 27, 2009
Gold and silver are both lower testing support. Gold is trading around $898 an ounce and silver around $11.98. Consolidating around an even number like that is a normal kind of performance. It was to be expected that we would see a consolidation range after pushing as high as we did above resistance. I would look for gold to trade in the $900 to $930 range with the potential
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January 26, 2009
Gold seems to be clearly breaking out on the upside in reaction to a weaker dollar. In early trading, gold is up $15, while silver is up $.21. The dollar is down 74 basis points at 84.88 and oil is down $.53 at $45.95 a barrel after reaching a high of $47.05. The Dow is up 112 points. Gold has reached a three-month high on increasing momentum to the upside. Momentum bu
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January 23, 2009
Gold is sharply higher, rising $20 in early trading. Gold reached a high of $884 on the February contract, while silver reached a high of $11.65 in the futures market. However, while gold came off slightly from the high, silver pulled back considerably on profit taking. Silver is up $.08. It is amazing that gold is up as much as it is given the fact that the dollar is up 77
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