|
-- Posted Thursday, 13 February 2003 | Digg This Article
April Gold: Close = $357.7, +$4.7
The sell off streak ended today, with gold gaining back almost half of yesterday’s losses. After having dropped over $30 from the recent high of $384.5, yesterday’s relatively low prices were just too ripe for buyers to pass up. With the dollar sinking and with the S&P breaking into fresh lows, there was plenty of incentive for gold to recover.
There were a couple of economic figures released that were better than anticipated; retail sales and unemployment. However, the stock market made it clear that the overabundance of negative variables from the geopolitical front are taking precedence. Stocks sank to fresh calendar year lows, the dollar plummeted over 100 points, bonds were over a full point higher, and all the while gold bugs licked their chops as they had plenty of cause to buy into the yellow metal again. Faith in the might of the US economic engine has dimmed as war with Iraq approaches and the war on terror continues. Blix is set to make a presentation before the U.N. Security Council and the markets certainly don’t anticipate that he’ll say, “the problem is solved.” To remind all of us that danger lurks in all countries, a man with a live grenade was arrested at Gatwick airport in the U.K. It’s not certain he’s a terrorist but it surely goes quiet a ways towards solidifying travel fears. Don’t expect consumers to increase their travel budgets anytime soon, and that can’t be great news to the tourism or airline industry, which are a large component of the economy. However, it does provide additional fuel for gold bugs to rationalize their beloved metal higher.
Also take note that oil prices continue to surge. Intelligence reports claim that massive amounts of conventional explosives are being moved near Iraqi oil fields. The inference is that of another scorched-earth policy should Saddam be forced into exile, killed or disarmed.
We’re hanging onto our long futures and long puts, and as mentioned yesterday, “perhaps the lower prices will now serve to attract fresh buyers into the market”, and sure enough that’s what happened today. If war breaks out there will be further reason for many to get excited about buying gold, so look for the $400 area as a target. Be sure to watch TradeScope daily, and remember, futures and options offer flexibility as one can just as easily be short or long any market. Each contract/option = 100 ounces, a $1 move in a futures contract = $100. Contact me anytime to discuss strategies to fit your needs.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
March Silver: Close = $453.3, +2.6-cents
Sliding down the slippery slope along with gold, the silver market has released some air from its tires. Gold has sold off the last few sessions and dragged silver down, but today gold and silver both nervously rallied. There has been a lack of fresh internal fundamental news for some time; action has been led by gold. The dip in gold that we expected was deeper than we thought, and this might serve as a more effective means to attract buyers into the yellow metal and infers that the white metal will appreciate as. Remember the bearish seasonal, wherein from approximately 2/5 to 2/25 silver has fallen an average of about 18 cents? Well, it appears to have worked like a charm this year. Each contract/option = 5,000 ounces, a 1-cent move in a futures contract = $50. Contact me anytime to discuss strategies to fit your needs.
To open an account and receive trading recommendations on silver futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
-- Posted Thursday, 13 February 2003 | Digg This Article
Previous Articles by Altavest Worldwide Trading, Inc.
|
