Monday, May 7, 2007
All Eyes on Gold
The metals sector was strong last week despite the Asian holiday, a stronger dollar and weaker oil.Copper jumped 7.2% and surged through key resistance while nickel (+10.6%) and lead (+4.3%) made new highs. This time of year is traditionally supportive to the metals as Chinese demand tends to recover following its New Year celebration and construction typically picks up in Europe and North America as the weather turns warm. All eyes are on the gold market as we approach the $700 resistance area. Currently there is talk of a Peruvian gold mine going on strike which would threaten supply and overnight AngloGold Ashanti (AU) posted a $97 million profit for the last quarter ending in March. In a bigger picture there are other supportive factors occurring. More and more gold mining companies are limiting their hedging practices and last week the Granddaddy of them all, Barrick (ABX) unwound a large hedge and took a loss on the position. Prior to this Barrick had been active in hedging - selling much of its production at pre-determined prices. Now, however, it spent $557 million to get out of its hedging contracts and this allows the company to take full advantage of rising gold prices.
Gold futures close higher to mark a three-session win
SAN FRANCISCO (MarketWatch) -- June gold climbed 70 cents to close at $690.40 an ounce Monday. It finished below the day's high of $693.20, but has gained $15.30 in three trading sessions. July silver gained 11 cents to close at $13.64 an ounce. July copper was the lone loser among the key metals, down 4.3 cents to close at $3.7155 a pound, giving back part of last week's 6.5% climb.
Metals - Gold hovers near 688, weak dollar supports
LONDON (Thomson Financial) - Gold hovered near 690 usd supported by a weaker dollar with attention shifting to tomorrow's US interest rate meeting.
At 3.24 pm, spot gold was quoted at 687.95 usd per ounce against the 687.85 usd level seen in late New York trade Friday. The metal touched 690.75 usd earlier in the session.
Last week, gold gained nearly 2 pct, mainly propelled by a soft US currency.
Trading was thin, however, as the UK is closed for a May Day holiday today.
A weaker dollar last week, which continued to struggle today against the euro, prompted investment into the precious metal as an alternative asset.
'Gold is marching to the sombre beats of the greenback's apparent funeral song,' said Kitco analyst, Jon Nadler, adding gold was showing 'signs of preparing an assault on the 695-700 usd area.'
Traders and analysts have been calling for the yellow metal to reach the 700 usd milestone for some time now.
At 3.24 pm, spot gold was quoted at 687.95 usd per ounce against the 687.85 usd level seen in late New York trade Friday. The metal touched 690.75 usd earlier in the session.
Last week, gold gained nearly 2 pct, mainly propelled by a soft US currency.
Trading was thin, however, as the UK is closed for a May Day holiday today.
A weaker dollar last week, which continued to struggle today against the euro, prompted investment into the precious metal as an alternative asset.
'Gold is marching to the sombre beats of the greenback's apparent funeral song,' said Kitco analyst, Jon Nadler, adding gold was showing 'signs of preparing an assault on the 695-700 usd area.'
Traders and analysts have been calling for the yellow metal to reach the 700 usd milestone for some time now.
Platinum Hits Record on Fund Buying
NEW YORK (AP) -- Platinum futures set a record high in New York on Monday on fund buying on a day when global activity was lighter than usual due to a holiday in London.
Gold and silver ticked upward but held in narrow ranges, helped by the continuing softer tone in the U.S. dollar.
July platinum settled up $22.10 at $1,350.90 an ounce on the New York Mercantile Exchange. It peaked at a contract high of $1,353.80, an all-time record for a nearby contract at the exchange.
With no trading in London, all of the activity was concentrated in New York and was thin, said Paul McLeod, vice president for precious metals at Commerzbank.
Gold and silver ticked upward but held in narrow ranges, helped by the continuing softer tone in the U.S. dollar.
July platinum settled up $22.10 at $1,350.90 an ounce on the New York Mercantile Exchange. It peaked at a contract high of $1,353.80, an all-time record for a nearby contract at the exchange.
With no trading in London, all of the activity was concentrated in New York and was thin, said Paul McLeod, vice president for precious metals at Commerzbank.
Dow: Longest bull run in 80 years
NEW YORK (CNNMoney.com) -- The Dow industrials ended at another all-time high Monday, closing with gains for the 24th out of 27 sessions - a streak that matched an 80-year-old record on Wall Street.
The Dow Jones industrial average (up 48.35 to 13,312.97) gained nearly 0.4 percent after briefly hitting an intraday record of 13,317.69. It was the fifth straight record close for the average.
Get the latest business news with the CNN.com business bulletin. (May 7) Play video The broader S&P 500 (up 3.86 to 1,509.48, Charts) index rose about 0.3 percent, edging ever closer to its all-time high of 1,527.46. That record was hit in March 2000 at the tail end of the last rally, fueled by the 1990s tech boom.
The Dow Jones industrial average (up 48.35 to 13,312.97) gained nearly 0.4 percent after briefly hitting an intraday record of 13,317.69. It was the fifth straight record close for the average.
Get the latest business news with the CNN.com business bulletin. (May 7) Play video The broader S&P 500 (up 3.86 to 1,509.48, Charts) index rose about 0.3 percent, edging ever closer to its all-time high of 1,527.46. That record was hit in March 2000 at the tail end of the last rally, fueled by the 1990s tech boom.
Get ready for $4 gasoline
NEW YORK (CNNMoney.com) -- With gas prices near record highs, experts say $4-a-gallon gasoline is just around the corner.
"I think it's going to happen," said Phil Flynn, a senior market analyst at Alaron Trading in Chicago. "Unless things change dramatically, I think we're going to see $4 a gallon."Already, prices in California average $3.48 a gallon, according to the motorist organization AAA. And one service station in San Francisco was charging $3.95, according to GasBuddy.com, a handy site that lists the cheapest and most expensive gas stations by city and state across the country.
Refinery problems and strong demand are the two main reasons cited for the runup. Prices hit a record high of $3.07 a gallon, according to the Lundberg survey released Sunday.
"I think it's going to happen," said Phil Flynn, a senior market analyst at Alaron Trading in Chicago. "Unless things change dramatically, I think we're going to see $4 a gallon."Already, prices in California average $3.48 a gallon, according to the motorist organization AAA. And one service station in San Francisco was charging $3.95, according to GasBuddy.com, a handy site that lists the cheapest and most expensive gas stations by city and state across the country.
Refinery problems and strong demand are the two main reasons cited for the runup. Prices hit a record high of $3.07 a gallon, according to the Lundberg survey released Sunday.
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