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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 07/30/2008 : 18:33:55
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METALS STOCKS
Gold ends at one-month low as dollar strengthens
By Polya Lesova & Myra P. Saefong, MarketWatch
Last update: 4:34 p.m. EDT July 29, 2008SAN FRANCISCO (MarketWatch) -- Gold futures fell $11 an ounce Tuesday to close at their lowest level in more than one month, as easing oil prices and a stronger U.S. dollar left traders inclined to sell the precious metal.
Gold for August delivery dropped $11.20, or 1.2%, to finish the session at $916.50 an ounce on the New York Mercantile Exchange, after trading as low as $913.80 earlier. The contract marked its lowest closing and intraday levels on the exchange since June 26.
"Strength in the dollar and rotation into equities seems to be spurring the downside movement today in commodities," said Zachary Oxman, a senior trader at Wisdom Financial.
"We're seeing another wave of liquidation in commodities and bonds in favor of equities as it seems that people are bottom-fishing here on better-than-expected economic news," Oxman said.
The Reuters/Jefferies CRB Index (CRB:reuters jefferies crb index price
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Last: 418.00+6.48+1.57%
3:11pm 07/30/2008
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CRB 418.00, +6.48, +1.6%) , a benchmark gauging the prices of major commodities, fell 0.5%.
On the currency markets, the greenback gained against most other major rivals, with the dollar index (DXY:US Dollar Index Future - Spot Price
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Last: 73.320.00-0.01%
7:13pm 07/30/2008
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DXY 73.32, 0.00, 0.0%) recently at 73.266, up from 72.694 in late North American trading Monday. See Currencies.
This typically spells pressure for dollar-denominated commodities such as gold and crude oil.
Crude-oil futures accelerated their losses, pressured by the dollar, with the September contract dropping $2.54 to close at $122.19 a barrel on the Nymex. See Futures Movers.
On Wall Street, U.S. stocks rose, rebounding from the prior session's sharp drop, as consumer confidence rose and Merrill Lynch & Co. said it would write down additional bad debt. See Market Snapshot. Treasurys declined, sending yields up. See Bond Report.
"None of the measures taken to date by the developed world's central banks have addressed the fundamental structure of the monetary system, so we can only expect more 'fire fighting measures' in the future and the atmosphere of uncertainty to persist," said Julian Phillips, an analyst at GoldForecaster.com.
"The credit crisis is a reflection of the banking system and how dependent we are on it," he said in emailed comments. "The environment continues to favor gold and silver as a safe haven against these fears."
In economic news, the Conference Board reported Tuesday that U.S. consumer confidence ticked up in July, while the level remained relatively low and job concerns persisted. The July consumer confidence index rose to 51.9 from a June reading that was revised to 51.0 from a prior estimate of 50.4. See Economic Report.
On Monday, gold finished little changed, ending up 90 cents an ounce.
"The metal may struggle to gain significantly until either oil or the dollar can provide support," wrote James Moore, analyst at TheBullionDesk.com.
"However, with fresh sizable write-downs being posted by the large investment banks, we expect investors to remain cautious and risk averse as a result, which should draw more safe-haven investment demand from longer-term players," Moore said in a note.
Merrill Lynch (MER:Merrill Lynch & Co., Inc
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Last: 26.91+0.66+2.51%
4:00pm 07/30/2008
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MER 26.91, +0.66, +2.5%) said late Monday that it is selling $8.5 billion in new stock to help cover losses from billions of dollars in bad investments that it sold a quarter on the dollar. Read full story.
Also on the Nymex, September silver futures fell 9 cents to close at $17.375 an ounce, while October platinum dropped $31.30 to close at $1,745.40 an ounce and September palladium fell $7.90 to end at $383.35 an ounce.
September copper futures slipped 2.2 cents to finish at $3.5905 a pound.
On the equities side, the Amex Gold Bugs Index (HUI:amex gold bugs index equal-$ weight
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Last: 402.30+2.28+0.57%
4:54pm 07/30/2008
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HUI 402.30, +2.28, +0.6%) fell 2.5% to close at 400.02 points.
The SPDR Gold Trust (GLD:spdr gold trust gold shs
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Last: 89.52-1.07-1.18%
4:00pm 07/30/2008
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GLD 89.52, -1.07, -1.2%) dropped 1.2% to end at $90.59, the iShares Silver Trust ETF (SLV:ishares silver trust ishares
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Last: 17.36+0.17+0.99%
3:59pm 07/30/2008
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SLV 17.36, +0.17, +1.0%) fell 1% to close at $17.19 and the Market Vectors-Gold Miners ETF (GDX:market vectors etf tr gold miner etf
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Last: 43.19-0.48-1.10%
6:40pm 07/30/2008
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GDX 43.19, -0.48, -1.1%) fell 2.1% to finish at $43.67.
Polya Lesova is a MarketWatch reporter based in New York.
Myra P. Saefong is MarketWatch's assistant markets editor, based in San Francisco.
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Think positive. |
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fb101
Administrator
USA
2856 Posts |
Posted - 07/30/2008 : 20:05:31
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| The bottom fishing will take the nasdaq back to about 2425, then fail. Just look at the dollar chart. I don't see any change in the trend yet. Many people think it's all over. It's barely begun. |
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wheeler_dealer
Penny Collector Member
USA
402 Posts |
Posted - 07/30/2008 : 22:01:40
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| Buying opportunity? |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 07/30/2008 : 22:14:02
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Anyone think it is interesting that oil and dollar are moving somewhat inverse to each other? Makes you think it isn't just demand/supply for oil, but demand for dollars helping cause the swings.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 07/31/2008 : 07:30:29
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quote:
Originally posted by fb101
The bottom fishing will take the nasdaq back to about 2425, then fail. Just look at the dollar chart. I don't see any change in the trend yet. Many people think it's all over. It's barely begun.
Agreed, the dollar looks like it fell off a cliff, hit a ledge, and now is about to roll off of the ledge and continue its plunge. |
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Dollar strengthens: gold at one month low.
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