Thursday, April 05, 2007
US$ Bears "Remain Firmly In Control"
The Associated Press reports on currencies. "The 13-nation euro rose to a two-year high against the U.S. dollar on Thursday, before the Easter holiday, after Washington reported increased unemployment. In late European trading the euro hit as high as US$1.3442, the highest since March 2005, before retreating slightly to US$1.3425."
"The British pound dropped to US$1.9707 from US$1.9753, after the Bank of England held interest rates steady at 5.25 percent, while the dollar rose slightly to purchase 118.69 Japanese yen from 118.67 in New York."
"The euro has been trading near its all-time high of US$1.3667, set in December 2004, on concerns over the U.S. economy and the massive trade and budget deficits."
From MarketWatch. "Dollar bears 'remain firmly in control,' said Sophia Drossos, currency strategist at Morgan Stanley. 'Our sense is that it was a combination of thinner than usual liquidity, given the holidays, and overwhelming dollar pessimism that pushed price action.'"
"'In light of the tone of dollar weakness that has dominated recent trading sentiment, dollar bears appear to already be anticipating a weak non-farm payrolls report tomorrow,' she said."
"Late in New York, the dollar was quoted at 118.71 yen, compared with 118.68 yen late Wednesday. The British pound traded at $1.9706 vs. $1.9754. The dollar changed hands at 1.2149 Swiss francs, compared with 1.2196 francs."
"Timothy Mazanec, senior currency strategist at Investors Bank & Trust Co., said 'even if payrolls number is strong tomorrow, that doesn't change the outlook' for the U.S. economy and interest rates."
"'People are still going to speculate about when the Fed will cut rates and when the European Central Bank, the Bank of England and all the other central banks will be raising rates,' he said."
"Gold futures closed higher Thursday to tally a two-session win of almost $10 an ounce with traders unwilling to sell the precious metal ahead of the long Easter holiday. Gold for June delivery rose $2 to close at $679.40 an ounce on the New York Mercantile Exchange, its strongest closing level since Feb. 27. The contract is up $9.60, or 1.4%, from Tuesday's closing level."
"'Gold prices continued their ascent, albeit at a slower pace,' said Jon Nadler, analyst at Kitco Bullion Dealers. 'Market watchers now believe that gold received a new lease on life by virtue of its passing over previous resistance levels and a close above $672 per ounce.'"
"'At least on the surface, it appears that gold is executing a de-coupling from oil (content near $64 and rising prospect of $60 in the cards), the U.S. dollar (weak but not terminal by a long shot) and from geopolitics (the Iran drama basically came and went without being the primary catalyst for substantial movements in the price of gold),' Nadler said."
"'The return of fund interest to the market has finally allowed gold to clear the $668-$670 resistance area and should now look to propel the metal back toward the highs of February ($689) and potentially beyond,' said James Moore, metals analyst at TheBullionDesk.com."
"A slight weakness in crude failed to put pressure on gold. May crude fell Thursday, extending Wednesday's decline as traders unwound the risk premium built into prices during a 13-day standoff between the U.K. and Iran."
"Other metals prices closed higher Thursday. June palladium rose $2.25 to close at $356.40 an ounce, and the July contract for sister metal platinum added $7 to end at $1,265.90 an ounce. May silver rose 12 cents to close at $13.74 an ounce."
"'Although we expect to see this bull run extend considerably further in the months ahead, we feel that we are in the short-covering squeeze part of the rebound at the moment and that things may pull back once the shorts have covered,' William Adams, analyst at BaseMetals.com told clients. 'We do not think the environment is as bullish as it was this time last year and therefore we should be prepared for some volatile trading,' he said."
"Regular metals trading on the exchange will be closed Friday and reopen Monday following the Easter holiday."
"The British pound dropped to US$1.9707 from US$1.9753, after the Bank of England held interest rates steady at 5.25 percent, while the dollar rose slightly to purchase 118.69 Japanese yen from 118.67 in New York."
"The euro has been trading near its all-time high of US$1.3667, set in December 2004, on concerns over the U.S. economy and the massive trade and budget deficits."
From MarketWatch. "Dollar bears 'remain firmly in control,' said Sophia Drossos, currency strategist at Morgan Stanley. 'Our sense is that it was a combination of thinner than usual liquidity, given the holidays, and overwhelming dollar pessimism that pushed price action.'"
"'In light of the tone of dollar weakness that has dominated recent trading sentiment, dollar bears appear to already be anticipating a weak non-farm payrolls report tomorrow,' she said."
"Late in New York, the dollar was quoted at 118.71 yen, compared with 118.68 yen late Wednesday. The British pound traded at $1.9706 vs. $1.9754. The dollar changed hands at 1.2149 Swiss francs, compared with 1.2196 francs."
"Timothy Mazanec, senior currency strategist at Investors Bank & Trust Co., said 'even if payrolls number is strong tomorrow, that doesn't change the outlook' for the U.S. economy and interest rates."
"'People are still going to speculate about when the Fed will cut rates and when the European Central Bank, the Bank of England and all the other central banks will be raising rates,' he said."
"Gold futures closed higher Thursday to tally a two-session win of almost $10 an ounce with traders unwilling to sell the precious metal ahead of the long Easter holiday. Gold for June delivery rose $2 to close at $679.40 an ounce on the New York Mercantile Exchange, its strongest closing level since Feb. 27. The contract is up $9.60, or 1.4%, from Tuesday's closing level."
"'Gold prices continued their ascent, albeit at a slower pace,' said Jon Nadler, analyst at Kitco Bullion Dealers. 'Market watchers now believe that gold received a new lease on life by virtue of its passing over previous resistance levels and a close above $672 per ounce.'"
"'At least on the surface, it appears that gold is executing a de-coupling from oil (content near $64 and rising prospect of $60 in the cards), the U.S. dollar (weak but not terminal by a long shot) and from geopolitics (the Iran drama basically came and went without being the primary catalyst for substantial movements in the price of gold),' Nadler said."
"'The return of fund interest to the market has finally allowed gold to clear the $668-$670 resistance area and should now look to propel the metal back toward the highs of February ($689) and potentially beyond,' said James Moore, metals analyst at TheBullionDesk.com."
"A slight weakness in crude failed to put pressure on gold. May crude fell Thursday, extending Wednesday's decline as traders unwound the risk premium built into prices during a 13-day standoff between the U.K. and Iran."
"Other metals prices closed higher Thursday. June palladium rose $2.25 to close at $356.40 an ounce, and the July contract for sister metal platinum added $7 to end at $1,265.90 an ounce. May silver rose 12 cents to close at $13.74 an ounce."
"'Although we expect to see this bull run extend considerably further in the months ahead, we feel that we are in the short-covering squeeze part of the rebound at the moment and that things may pull back once the shorts have covered,' William Adams, analyst at BaseMetals.com told clients. 'We do not think the environment is as bullish as it was this time last year and therefore we should be prepared for some volatile trading,' he said."
"Regular metals trading on the exchange will be closed Friday and reopen Monday following the Easter holiday."
# posted by Ben Jones @ 2:51 PM 
Comments:
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what happens if the euro hits 1.37?
also, eric bolling the other day said that he was perplexed by the movement in gold. he said something like "I don't know what's going on in gold but it's bullish."
also, eric bolling the other day said that he was perplexed by the movement in gold. he said something like "I don't know what's going on in gold but it's bullish."
Hi Jim,
Experiencing any shortages of selected items?
BTW, if you don't mind, could you describe how you got into the business? What kind of products you carry? How do you readily judge the authenticity of what you are offered by customers?
Experiencing any shortages of selected items?
BTW, if you don't mind, could you describe how you got into the business? What kind of products you carry? How do you readily judge the authenticity of what you are offered by customers?
Jim,
I have always been curious about buying 'junk' gold and silver from the public (broken chains, etc). Do you have any knowledge of how to do this or a book/website you could direct me to?
Also, you mentioned fakes. How often do you get presented with these and how common do you think they are out there?
TIA
I have always been curious about buying 'junk' gold and silver from the public (broken chains, etc). Do you have any knowledge of how to do this or a book/website you could direct me to?
Also, you mentioned fakes. How often do you get presented with these and how common do you think they are out there?
TIA
Thanks, Jim! Very informative.
My curiousity stems from the fact that I believe PMs will be the next big bubble. Have you read "America's Bubble Economy"? In one chapter Eric Janszen (from iTulip) makes the case better than I can.
Obviously there's business and/or investment opportunities there. Like Ben, though, I worry more about what I don't know. It would appear to be a good time to be buying from the public provided you know what you're doing. *You* do, but I don't (yet). So, for the moment, my purchases are from established dealers.
Any good reading material you might suggest?
p.s.: You're right... I avoid the collectibles like the plague.
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My curiousity stems from the fact that I believe PMs will be the next big bubble. Have you read "America's Bubble Economy"? In one chapter Eric Janszen (from iTulip) makes the case better than I can.
Obviously there's business and/or investment opportunities there. Like Ben, though, I worry more about what I don't know. It would appear to be a good time to be buying from the public provided you know what you're doing. *You* do, but I don't (yet). So, for the moment, my purchases are from established dealers.
Any good reading material you might suggest?
p.s.: You're right... I avoid the collectibles like the plague.
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