DAILY COMMENTARY
January 14, 2010
Precious metals are up this morning with gold up $2 and silver up $.10 in early trading. The metals are doing a very good job given the fact that the dollar is up 7 basis points. Oil has also bounced back and is up $.28 trading at $79.95 a barrel. Gold was helped by an unexpected drop in retail sales suggesting that the Fed will hold off on any rate increase. Similarly, gold
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January 13, 2010
Gold is again trading above the 50-day moving average, lifted by a weaker dollar. The dollar is down 21 basis points, and gold is trading up $3. Silver is up $.21, although platinum and palladium are lower. The fact that gold quickly regained the 50-day moving average was a positive sign, said Tom Pawlicki, analyst with MF Global to Dow Jones Wire Service. GFMS just forecast
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January 12, 2010
Gold is slightly lower this morning after recovering from an overnight dip. The dollar is stronger, up 4 basis points at 77.05, while gold is trading at $1,147. Silver is down $.18. This morning's correction is largely just a profit-taking correction and consolidation of the recent gains. Gold traded in a fairly wide range overnight, reaching a low of $1,144.30 and a high of
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January 11, 2010
Gold is up $15 and silver is up $.30 in the first half-hour of trading. Overnight, gold was as high as $1,163, up $25. While it has come off of the highs, it nevertheless is posting an outstanding gain this morning. The gains in the metals markets are tied with all commodities as it was revealed overnight that China went on a commodities shopping spree in December. The Dow J
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January 08, 2010
In overnight trading gold was lower but then turned around and moved back into positive territory after the jobs report. However, it then pulled back as the dollar recovered, while silver is up $.04. Although the dollar rebounded it is still down 36 basis points on the expectation that the Fed will continue to maintain low interest rates and easy monetary policy because the
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January 07, 2010
Gold pulled back a little this morning in reaction to a stronger dollar and expectations that China might tighten monetary policy. An early indicator out of China is that they are gradually raising interest rates and that was causing their currency to rise versus the dollar and other currencies. Some say China may revalue the yuan by 10%. The higher dollar weighed on commodi
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January 06, 2010
Gold and silver are starting out the day with a positive gain as gold is up $10 and silver is up $.19. Both are up in spite of the fact that the dollar is up 10 basis points and oil is unchanged at $81.77 a barrel. Equities are soft this morning.
The gold market is reacting to a number of factors and ignoring the stronger dollar. Among them is the news that the ECB w
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January 05, 2010
Precious metals are extending their gains this morning, with gold up $2 and silver up $.13. The rally in metals continues to be a result of a weaker dollar, down 12 basis points. The equity market is also lower, with the Dow down 45 points and oil trading near unchanged, down $.17.
One analyst told the Dow Jones Wire Service, "The U.S. dollar softened overnight, which
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January 04, 2010
Gold and silver posted big gains coming into the New Year, as gold was up over $20 and silver up more than $.50 in pre-market trading. This is a very substantial boost in the metals market and other commodities also moved higher. The metals have risen on a combination of a weak dollar, down 54 basis points and higher oil prices, up nearly $2.
Analysts on CNBC noted th
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December 31, 2009
Gold and silver moved up this morning, posting excellent gains on this last trading day of the year. With gold back above $1,100 an ounce, it has posted a solid performance throughout the course of this year. After hitting a high of $1,200 and retreating back on a corrective and consolidative mode, the market, nevertheless, closed dramatically higher than last year. In fact,
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December 30, 2009
A stronger dollar, up 24 basis points, caused the metals to pull back this morning, with equities also falling back in early trading. Gold extended its loss, dipping $9 in early trading as gold continues to experience end of year profit-taking. Thin trading conditions mean an increasingly volatile market, creating what is an obvious buying opportunity. The correction at the
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December 29, 2009
Gold dipped below $1,100 an ounce briefly this morning, but quickly bounced back. The Dow Jones Wire Service reported that trading conditions were extremely thin and the metal appears to be range trading between $1,100 and $1,108 an ounce. The dollar is weak today and that is supportive of gold, as are tensions in the Middle East, which could drive up oil prices and help to
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December 28, 2009
The metals are higher again today with gold up $2 and silver up $.10 in early trading. The metals are supported by a softer dollar, down 13 basis points and firmer oil, up $.84. However, I think a key factor is the attempted terrorist attack on an airplane in the U.S. That gave rise to a new awareness that terrorism is a continuing problem and must be dealt with on an ad hoc
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December 24, 2009
The senate passed the Health Care Reform Bill this morning, and the dollar weakened and gold shot upward, gaining $8 and silver up $.15 in the first half-hour of trading. The dollar is down 14 basis points, oil is up $.22 and the Dow is up 23 points. The dollar weakened and gold rose in reaction to the passage of the Health Care Reform Bill by the Senate as investors anticip
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December 23, 2009
Gold and silver are both posting gains this morning, after they rebounded yesterday from their lows. Gold is up $2 and silver is up $.10 in early trading. The dollar is down 18 basis points, which is the key factor supporting the precious metals this morning. Oil is also helpful as it is up $1 in early trading. The dollar fell on news that new home sales fell 11.3% in Novemb
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December 22, 2009
Gold and silver are lower this morning with gold testing $1,095 on the key futures contract, while silver has fallen to a low of $16.85 an ounce. That is in sharp contrast to levels earlier in the morning when gold firmed on the GDP revision showing the economy weaker than previously thought. Surprisingly, the dollar is also a bit soft, trading at unchanged to slightly lower
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December 18, 2009
Overnight gold dipped to a low of $1,097.70 on the February futures but bounced back nicely after the open to trade near unchanged levels. Silver gained $.11 in early trading after dipping overnight. The metals are up in spite of the fact that the dollar is steady, up 4 basis points and is helped by the oil market, which is up $1.63 at $74.29 a barrel. Oil shot up this morni
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December 17, 2009
The dollar rallied enormously again this morning, up 70 basis points at 77.69 on the index. It was as high as 77.85. This caused all commodities to pull back along with the equity market. While gold is down $16 in early trading and silver down $.22, they have both bounced back from their lows. The Dow Industrials are down 63 points.
The euro fell sharply and the doll
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December 16, 2009
Gold made a big jump this morning rising $15.60 in early trading. Silver is up $.20. The dollar is down 11 basis points at 76.85 and oil is up $.86 at $71.55 a barrel.
The Consumer Price Index data showed consumer prices rising 0.4% or 4.8% annualized. That is a factor weakening the dollar and further supporting the gold market. In addition, gold is likely influenced
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December 15, 2009
Gold fell back overnight, reaching a low of $1,112 an ounce on the key futures contract. This was in reaction to a super strong dollar, up 54 basis points at 76.88. The dollar had reached a high of 77 overnight. The strength of the dollar was due to the fact that Austria nationalized one of its banks and announced that it has problems with several other banks. In addition, a
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