Filed under: Major Movement , Competitive Strategy , Barrick Gold (ABX) , Commodities , Federal Reserve Back in the late 1970s, the Hunt brothers from Texas tried to corner the silver market . That drove prices to $48 an ounce. Now, 31 years later, silver is shooting higher again. The March silver futures contract closed at $32.296 per ounce , up 72 cents. Since gold is expensive, investors are turning to silver to hedge against inflation. Many fear that the Federal Reserve will not be able to control the spike in commodity prices. The Fed is buying $600 billion of treasuries and keeping interest rates near zero. Continue reading Silver Near a 31-Year High Silver Near a 31-Year High originally appeared on BloggingStocks on Sat, 19 Feb 2011 12:50:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments
Gold Futures
Watching Paint Dry
January Crude closes virtually unchanged on the day but as we’ve hinted in recent blogs we think there is more work to be done on the downside. The “whippiness” continues in Natural Gas with prices down 3.7% today. We’ve gone from bullish to bearish back to bullish and prefer the sidelines for clients in this indecisive environment. Though we’ve yet to get a clear signal, some of our more aggressive clients opted to get short the S&P today. We are not advising futures at this juncture, but our suggestion would be purchasing 75-100 point March ES put spreads. This may be premature, but if prices were to start rolling over, we think a quick 4-6% move lower could be captured. The 20 day MA continues to be the pivot point in the US dollar; in December that level is 79.70. We continue to suggest buying dips in the Euro, Pound and Swissie. Inside day in both Gold and Silver. For the first time in several months, we think the path of least resistance is lower in both precious metals. In February Gold our target remains $1330, and in March Silver $27. The USDA grain stocks report comes out tomorrow before the market open. Here are the average estimates in millions of bushels from one of our more informed floor traders: Corn 803, Wheat 849, and Soybeans 167. We advised most of our clients to lighten up in their profitable Corn positions. We remain bullish, but don’t like carrying trades into potentially market moving reports. The only real excitement in the softs sector was Lumber moving up limit, or 3.85% today. Nearly a 10% appreciation in the last three sessions. We feel there is more upside, but suggest waiting for a retracement if you are not already long. Risk Disclosure:
When will it end?
We had expected trading to slow down by this time but the volumes are still there and we’re seeing plenty of tradable action. $87.50-88 has served as major support in February Crude for the last week and that continued in today’s session. We’re starting to think we may not get a break lower, on a settlement above $90 we will advise clients to start initiating longs again. February natural gas was higher by 4.2% today trading back over the 50 day MA. Aggressive traders could scale into February futures or purchase February or March 50 cent call spreads. If trading futures place stops below the contract lows; which also may serve as a triple bottom…stay tuned. A fresh 10′ high in the indices but we’re still looking for a correction in the coming weeks. We’ve yet to advise clients to short futures but do still like the idea of purchasing March ES put spreads. Looking at the charts it appears we may get a 2-3% appreciation in the dollar index in the coming weeks. If that plays out we feel the best way to trade is selling rallies in the Euro, Swissie or Pound. Live cattle traded back above the 20 day MA but settled just below that level. Aggressive traders can start re-establishing longs as we feel into next year we could see new contract highs followed by
Gold Backs Off High, But Overall Uptrend Remains in Place
February Comex gold futures prices have backed down from the early-December all-time record high of $1,432.50 an ounce. Profit- taking and position-evening as the year winds down and as the holidays approach has put some downside price pressure on the precious yellow metal, as prices have been trending lower for the past two weeks. However, the gold market bulls still have the overall near-term and longer-term technical advantage. A 4.5-month-old uptrend is still in place on the daily bar chart. The longer-term monthly continuation chart for nearby gold futures shows prices have been trending higher for nearly 10 years. There are no significant early technical clues to suggest that a market top is close at hand for gold. Gold bulls’ next near-term upside technical objective is to produce a close above solid technical resistance at last week’s high of $1,408.90. Bears’ next near-term downside price objective is closing prices below solid technical support at last week’s low of $1,361.60. First resistance is seen at $1,400.00 and then at $1,408.90. Support is seen at Tuesday’s low of $1,384.10 and then at Monday’s low of $1,376.60. Stay tuned! Jim Wyckoff Related articles Peter Brimelow: Gold could have a golden year end (marketwatch.com) Gold: strong nerves and patience of ten men (investmentpostcards.com) Is Gold Getting Precious Again? (GLD, GDX, GDXJ) (247wallst.com)
Investors to Silver: “Let’s Get Physical”
The scramble for physical gold and silver is intensifying. People increasingly want to own the real thing, and not some paper substitute, all of which comes with counterparty risk. This conclusion is apparent from the fact that the futures prices for gold and silver have moved into “backwardation.” Allow me to explain… Because gold is Investors to Silver: “Let’s Get Physical” originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”
Ivanhoe (NYSE:IVN ), Gammon (NYSE:GRS), Yamana (NYSE:AUY) Make Big Moves Up as Gold Prices Soar
Ivanhoe Mines (NYSE:IVN ), Gammon Gold (NYSE:GRS) and Yamana Gold(NYSE:AUY) have all made big upward moves in their share prices today as gold prices came roaring back, as the U.S. dollar fell back to earth where it belongs. Spot gold prices rose by $18.30, increasing to $1,354.10 an ounce as of this writing. Gold futures for December delivery rose to $1,346.90 on the Comex division of the New
Freeport (NYSE:FCX), Goldcorp (NYSE:GG), Newmont (NYSE:NEM) Soar on Rising Gold Prices
Freeport-McMoRan Copper & Gold (NYSE:FCX), Newmont Mining (NYSE:NEM) and Goldcrop (NYSE:GG) made nice upward moves today as the price of gold soared to another record high, with December delivery gold prices reached as high as $1,375.70.Spot gold was at $1,370 a 1:25 PM EDT.Freeport was among the leaders in the sectors, pushing up to $99.45, gaining $4.32, or 4.45 percent at 1:25 PM EDTGoldcrop
Goldman Sachs’ New 12-Month Gold Forecast: $1,650 an Ounce
Investment powerhouse Goldman Sachs now believes gold may rally more that 20 percent from this month’s record to $1,650 an ounce in 12 months citing further quantitative easing in the United States and the prospect for falling long-term interest rates. Goldman also raised its three- and six-month gold price forecasts to $1,400 and $1,525 an ounce, respectively. Analysts from Goldman Sachs wrote in a report this week: With U.S. real interest rates pushing lower off the slowdown in the pace of the U.S. economic recovery and the growing prospect of another round of quantitative easing, we expect gold prices to continue to climb…. Despite the rebound in net speculative length, it remains well below levels consistent with the current low U.S. real interest rate environment… The return to quantitative easing will likely be a strong catalyst to drive gold prices higher, and we expect the gold price rally to continue until U.S. monetary policy begins to tighten. The investment bank expects the Federal Reserve to return to quantitative easing with purchases of U.S. Treasury securities of $1 trillion, which should depress U.S. bond yields. The analysts recommended buying Comex December 2011 gold futures. They also recommended investors buy Nymex January 2011 platinum, saying that “recovering global automobile demand will likely continue to put upward pressure on auto-catalyst demand and therefore on platinum and palladium prices.” Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits Goldman Sachs’ New 12-Month Gold Forecast: $1,650 an Ounce originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.
Gold Prices Forecasted Higher
On Friday, gold futures for December finished at $1,345.30 an ounce… the second highest close on record. We spent some time last week discussing whether gold prices are overheated or not. Just before the weekend, the gold bugs spoke up about what fac…
Gold Prices Today Rise as Fed Expected to Inflate
As the economic news continues to get worse, gold investors continue to push gold prices up as expectations the Fed will inflate or implement quantitative easing sometime soon, grows. Gold futures’ prices today have surged to $1,346.20 for December delivery, rising $11.20 on the Comex in New York. Also continuing to fuel the gold price bonanza is the ongoing collapse of the U.S. dollar. Much
Gold and Silver March to New Highs
Filed under: International Markets , Market Matters , Commodities , Currency Precious metals moved higher today, led by gold, which set another record high. Here are the numbers: December gold futures are trading at $1,328.20, per ounce, up $11.40 (as of 8:00 am EDT) December silver is up 23 cents to $22.27 per ounce. October platinum is trading at $1,681.7 per ounce, up $14. December Palladium is up $7.20 to $568.50 per ounce. Continue reading Gold and Silver March to New Highs Gold and Silver March to New Highs originally appeared on BloggingStocks on Tue, 05 Oct 2010 10:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments
