Money and Metals

Reuters reports on some new records for precious metals. "Precious metals futures closed at new multiyear peaks on Thursday, powered by heavy fund buying across a range of commodities that was driven by positive market outlooks and thoughts of even higher prices. Platinum hit an all-time peak atop $1,100 an ounce as funds piled in to boost their returns at quarter's end, while gold and silver futures shot to 25 and 22-year highs, respectively, and palladium scored its highest level in nearly four years."

"Silver for May delivery at the COMEX division of the New York Mercantile Exchange rose 4.9 percent, or 54.5 cents, to end at $11.66 an ounce, after trading from $11.10 to $11.7150; the priciest for futures since September 1983. Silver has climbed about 12 percent since the Securities and Exchange Commission on March 21 approved rule changes that would allow the American Stock Exchange to list shares in Barclays Plc's ETF."

"Analysts have said silver could reach $12 or even $15 in the medium-term, if the ETF eventually attracts copious buying of the metal. Spot silver streaked to $11.62/11.65 an ounce, from $11.10/11.13 previously. The daily London fix was at $11.45. COMEX June gold shot up $13.20 to $591.80 an ounce, just off a new high of $592, which was the priciest for futures since January 1981. The day's low touched $576.50."

"Investors are scooping up more gold and other hard assets as a safe haven amid uncertainty over the economy and geopolitics, analysts said. Its next major target lurks a mere few dollars higher, traders said. 'Gold looks like it's going to $600 so everyone's watching that,' said one metals floor dealer."

"Spot gold advanced to $586.20/587.10 an ounce, up from the last New York close of $573.10/574.00. On the board at NYMEX, benchmark July platinum got as high as $1,104.80 before edging back to $1,102.70 for a gain of $14.80. Spot platinum rose about $18 to $1,088/1,092. NYMEX June palladium hit its highest since September 2002 at $355.80 before trading to $350.30, still up $12.90. Spot palladium rose around $10 to $343/347."

"In other markets, the dollar fell against the euro, while crude oil climbed toward $67 per barrel after Iran rejected a U.N. Security Council demand that it halt uranium enrichment."

And Bloomberg has the latest on the Australian dollar. "The Australian dollar gained, heading for its first weekly rise in four, as the price of the country's commodity exports copper and zinc hit records and gold surged to a 25-year high. The jump in metals prices has helped the Australian dollar rebound from an 18-month low two days ago as concern over a waning interest rate gap weighed on the currency."

"The currency was also supported be a weaker U.S. dollar, which slumped on concern the Bush administration will pursue a policy supporting a weaker currency to help spur economic growth and employment. The New York Times reported that Joshua Bolten, who will replace Andrew Card as White House chief of staff next month, wants Treasury Secretary John Snow to resign. Snow has been an advocate of a 'strong dollar' policy."