Tuesday, February 14, 2006
Gold Traders See Support Around $540
Market Watch has this report on metals trading. "Gold futures rose as much as 1% Tuesday afternoon on the heels of a two-session losing streak that amounted to $26 an ounce. Gold for April delivery was last trading up $4.70 at $546.80 an ounce on the New York Mercantile Exchange. The contract touched a high of $548."
"'The overnight action in the gold market has brought the April contract to the 50-day moving average which now stands at $541.70,' said Dale Doelling. 'This very strong support area is holding for now.'"
"From here, traders will look towards the week's end to see if that 50-day moving average 'can hold before they can feel semi-comfortable the worse is behind them,' said Peter Grandich."
"Traders said the correction was helped by the fact that some of the political stories that have been grabbing headlines recently; Iran's nuclear research, the row about editorial cartoons portraying the prophet Muhammad, the U.S. trade deficit; moved off the front pages. Most analysts remain bullish on gold."
"'Longer-term fundamentals remain positive, amid steadily accelerating demand from the major emerging economies and constrained output levels,' said research firm Action Economics."
"Other metals futures mirrored the strength in gold Tuesday. March silver futures traded up 15.2 cents, or 1.7%, at $9.27 an ounce. April platinum gained $5.30 at $1,020 an ounce and March palladium added $4.45 at $279.50 an ounce."
"'The overnight action in the gold market has brought the April contract to the 50-day moving average which now stands at $541.70,' said Dale Doelling. 'This very strong support area is holding for now.'"
"From here, traders will look towards the week's end to see if that 50-day moving average 'can hold before they can feel semi-comfortable the worse is behind them,' said Peter Grandich."
"Traders said the correction was helped by the fact that some of the political stories that have been grabbing headlines recently; Iran's nuclear research, the row about editorial cartoons portraying the prophet Muhammad, the U.S. trade deficit; moved off the front pages. Most analysts remain bullish on gold."
"'Longer-term fundamentals remain positive, amid steadily accelerating demand from the major emerging economies and constrained output levels,' said research firm Action Economics."
"Other metals futures mirrored the strength in gold Tuesday. March silver futures traded up 15.2 cents, or 1.7%, at $9.27 an ounce. April platinum gained $5.30 at $1,020 an ounce and March palladium added $4.45 at $279.50 an ounce."
# posted by Ben Jones @ 10:18 AM 
