Monday, February 13, 2006
Golds' Recent Pullback A 'Buying Opportunity'?
Market Watch has this report on early metals trading. "Gold futures edged lower Monday morning, but held their ground above the $550-an-ounce level after dropping more than 3% last week. Gold for April delivery was last down $1.80 at $551.70 an ounce on the New York Mercantile Exchange. It fell as low as $550.80, but traded as high as $555."
"'In the last several weeks, gold has dropped 5% from its 25-year high,' said Emanuel Balarie. But 'demand for gold as an alternate currency, global demand from central banks, and the continued demand for jewelry in China, India and emerging economies will continue for several years to come,' he said. Given that, he views recent weakness in gold prices as a 'buying opportunity.'"
"'Longer term, fundamentals are supportive, amid accelerating demand from emerging economies and constrained output levels,' economists at Action Economics said early Monday. In the short term, however, a lot will depend on how investment funds behave after a week in which many trimmed back heavily on their net long exposure. Gold has lost about $25 from its peak level last week."
"'Price action around the previous pivot level of $540 will be interesting in coming sessions,' they said."
"Mark silver futures were last trading up 2.5 cents at $9.404 an ounce. April platinum futures fell $11.10 to $1,029 an ounce and sister metal palladium saw its March contract lose 65 cents to stand at $284 an ounce."
"'In the last several weeks, gold has dropped 5% from its 25-year high,' said Emanuel Balarie. But 'demand for gold as an alternate currency, global demand from central banks, and the continued demand for jewelry in China, India and emerging economies will continue for several years to come,' he said. Given that, he views recent weakness in gold prices as a 'buying opportunity.'"
"'Longer term, fundamentals are supportive, amid accelerating demand from emerging economies and constrained output levels,' economists at Action Economics said early Monday. In the short term, however, a lot will depend on how investment funds behave after a week in which many trimmed back heavily on their net long exposure. Gold has lost about $25 from its peak level last week."
"'Price action around the previous pivot level of $540 will be interesting in coming sessions,' they said."
"Mark silver futures were last trading up 2.5 cents at $9.404 an ounce. April platinum futures fell $11.10 to $1,029 an ounce and sister metal palladium saw its March contract lose 65 cents to stand at $284 an ounce."
# posted by Ben Jones @ 7:35 AM 
