Friday, November 17, 2006


Platinum Tumbles

Reuters South Africa reports on precious metals. "Platinum prices declined more than four percent on Friday to a two-week low, as investors took profits from the metal's recent rally to a two-week high, analysts said. Gold inched lower after hovering in a tight $3-an-ounce range, and analysts said prices might slip further on weaker oil prices and a firmer dollar, they added."

"Oil slipped under $56 a barrel to its lowest this year, deepening a $2.50 rout in the previous session driven by fund selling and pressure from high fuel stock levels in the world's leading oil consumer the United States. The dollar gained, making gold costlier for holders of other currencies."

"'With repeated failures to conquer $630 resistance, (we) expect gold to remain sideways with scaled up resistance towards $640,' Standard Bank said in a daily note."

"Investors awaited data on U.S. housing starts in October, due at 1330, for cues on U.S. economy's health."

The Associated Press. "Crude-oil futures hit a new low for the year on Friday, following a tumble the day before, as traders focused on the bearish aspects of conflicting market trends. Vienna-based PVM Oil Associates said Friday that 'high stocks and warmer weather forecasts for the U.S. dragged down all Nymex contracts.'"

"Many analysts still remain bullish in their outlooks, citing concerns about instability in Nigeria and Iraq, a recent drop in U.S. refinery output and trading patterns that suggest the market is preparing for a late-year upswing."

"'Now with OPEC already talking another production cut and the extremely strong demand we should soon pressure the upside of our current trading range,' Phil Flynn, an analyst at Alaron Trading Corp., told Dow Jones Newswires. 'And to break out we will need just one little bullish story to get the complex rolling.'"

More reasons to stay away from muni's.

'U.S. law enforcement agents seized documents from three brokers and subpoenaed companies including bond insurers and General Electric Co. in a criminal investigation of whether banks and financial firms conspired to rig bids for investment deals with local governments.'
Hmmm... have been reading all sort of bullish comments on platinum lately.
Sounds like profit taking to me. Lots of people got interested recently with word of the ETF. Was probably pretty overbought.
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