Tuesday, March 07, 2006

 

Three Day Tumble For Gold Futures

MarketWatch has the latest on precious metals. "Gold futures closed at a more than one-week low Tuesday, marking a three-session loss of almost $16 an ounce as traders reacted to expectations that a compromise over Iran's nuclear program could be worked out. Gold for April delivery fell as far as $549.50 an ounce on the New York Mercantile Exchange, then recovered slightly to finish at $554.50 an ounce, down $2.30 at its lowest close since Feb. 23."

"The contract has tallied a loss of $15.90 an ounce from weakness on Friday, Monday and Tuesday. Even so, 'off-stage acceptance of the $500-plus levels has been building, so the falls will stop where physical demand wants it to,' said Jullian Phillips."

"Silver was the lone gainer in the precious-metals futures market Tuesday. May silver climbed 8.2 cents to close at $10.107 an ounce following a decline of 21 cents sustained in the previous session. On Friday, it climbed as high as $10.31, a level not seen in about 22 years, as traders bet that the silver-based exchange-traded fund in registration from Barclays Global Investors may soon begin trading."

"Other metals futures lost ground Tuesday. The June palladium contract shed $5.65 to close at $292.75 an ounce, while April platinum lost $2.50 to end at $1,040.90 an ounce and May copper fell by 1.95 cents to finish at $2.177 a pound."

"Also lower were indexes that track stocks in the metals-mining sector, mirroring the continuing weakness in gold. The Amex Gold Bugs Index (HUI) closed down 3.2% at 296.8 points. A close in the HUI below the support level of 295 could create another 10% fall, Peter Spina warned."

"Among the index components, shares of Hecla Mining (HL) were the biggest losers, down 8.3% to close at $5. Agnico Eagle Mines (AEM) dropped 7% to finish the session at $25.32."

Comments:
Whew..I nailed that pullback dead-on to the day!!! (PS not to brag but I hit the last one too!)

Gold is looking pretty attractive again. I'm on the fence right now. I still think it goes to $600 by year end. Another minus $10 day and that could be the catalyst to send gold back down to the high $400s

It'd be the buying opportunity of the year. Hard to be patient right now..
 
tjd,
Good call and an important lesson about trading.
 
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