Wednesday, March 15, 2006

 

Gold 'Finding Its Feet Again'

The Business Day site has todays trading numbers. "Gold rose to its highest in a week in early European trade today as traders took heart from overnight gains, triggered by a weakening in the dollar. Silver was also looking strong, having fallen less aggressively than gold at the end of last week, with some analysts looking for it to launch an attack on its recent 22-year peak of $10,31."

"In early trade spot gold was at $551,60/552,35 a troy ounce, unchanged from late levels in New York yesterday and just off a one-week high of $552,25. Analysts said gold’s recent closer correlation to the price of oil could make it vulnerable to a setback down in the $435-440 regions if oil prices wobbled. But growing holes in the US balance sheet should underpin a still bullish longer term look. Oil dipped below $63 a barrel today, pausing after a two-day rally that added 5% to prices."

"The dollar fell around one percent yesterday and remained in a feeble state today on views that US interest rates won’t rise as much as initially thought. Data showing a plunge in US retail sales in February and a record current account deficit in the fourth quarter also bruised the US currency and diminished gold’s appeal to investors."

"'Both results cast doubts on the US economy and weighed on the US dollar, encouraging investors to continue their investment interests in the yellow metal,' Standard Bank said in a daily note."

"Investor interest in silver remained high. Spot prices rose to $10,21/10,24 an ounce, versus New York’s $10,20/10,23. 'With fund players back on the bid silver is now within range of its multi-year high of $10,31 set on March 3rd,' James Moore of TheBullionDesk.com said. He added that a breach of that peak was likely to bring $10,45-50 quickly into view, but a failure to move higher would see the metal move back to support at $10 then $9,85 and $9,65."

Comments:
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Silver might twirl around for awhile until the SLV countdown begins. Then the march will continue.
 
silver is back around $10.31
 
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