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-- Posted Monday, 24 February 2003 | Digg This Article
April Gold: Close = $356.4, +$4.6
A second resolution to disarm Saddam is making it’s way into the limelight, and the timetable for ousting Saddam seems to be less than three weeks away. As indecisive as gold as appeared over the last week or so, the underlying tone appears supportive to prices. The air remains filled with tension and uncertainty over the Iraq issue and gold bugs are zeroing back in on the yellow metal. After the $40 sell off from the highs near $400, low prices apparently did a good job of attracting new buying blood. The Euro pounded the dollar once again and stocks reeled in pain, with the Dow lower by over 150 points and the dollar index weaker as much as 60 points. If this continues, gold could end up as one of a few viable investment ideas left standing. The bevy of recent economic data has stoked the coals of bearishness underlying the lack of consumer confidence and general sense of economic malaise. There are always plenty of smart folks with plenty of money, the question is, considering money is flowing out of equity funds, where will it be going next, into gold? Surely gold has benefited from poor equity performance, and the proof is in the $120 move over the last twelve months. But, how much steam remains in the golden boilers? Perhaps we could see prices over $400 quite soon? Energies prices are near two-year highs, and there was a near historic move in natural gas today, with the March contract rallying over $2.5, which is the equivalent of $25,000 per contract! Unleaded prices continue to swell, with gas at 19-month highs. One has to wonder how much more prices can move up before economic growth is truly stifled by the higher costs of this energy “tax.” How many SUV’s will sell in this environment! How much more premium remains in energy prices, and if a conflict does arise, will supplies actually be interrupted? If energies find good cause to remain buoyant, gold too will likely remain well supported. Dark clouds hover over the question of Iraq, likely keeping gold nervously supported. Look for the $400 area as a target. Meanwhile, hang onto those gold puts as a hedge to the futures. 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.
May Silver: Close = $472.8, +5.1-cents
It’s too bad there isn’t much more to silver’s story, but with few fresh internal fundamentals surfacing silver is finding direction from gold. The gold dip we expected was deeper than we thought, but now that prices seem to be edging higher, silver too appears ripe enough to attract new buyers. Indicators such as slow stochastics have turned higher and prices are trading above moving averages. Look to the 480 area as resistance, but it’s doubtful the resistance will be strong enough to keep a lid on prices. 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 Monday, 24 February 2003 | Digg This Article
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