Gold Seeker Weekly Wrap-Up - Gold Ends the Week at a New 25 Year High

Note: All U.S. markets are closed Monday in observance of Martin Luther King Jr. Day.

While PPI came in more than double what was expected, Core PPI came in less than expected and tamed inflation fears. For the year, PPI rose 5.4% and Core PPI rose 1.7%. The gain in Retail Sales was attributed almost entirely to gains in autos and gas. Business Inventories were also driven by autos.

Gold fell down near $545 in Asia and held mostly slightly lower in London and early New York trade, but a surge a little after 10AM EST rocketed the price above $555 to lead gold to close near its highs at a new near-25 year high. Gold last traded above $555 on January 22nd, 1981, leaving gold about 1 week away from technically accomplishing 25 year high status.

Silver traded modestly lower in Asia before finding small gains in London, but it then dropped to around $8.90 in early New York trade before it surged higher with gold and ended with a nice gain to close just 10 cents from its 18 and ½ year high set this past Monday.

Gold and silver equities started Friday with just slight gains before jumping higher along with the metals in late morning trade. All three indices ended near their highs of the day with over 3% gains to bring the XAU to new 9 and ½ year highs and the HUI and GDM to new all-time highs.

Euro gold jumped to new all-time highs near €460, platinum gained $17 to $1,026 to make new 26 year highs, palladium gained $10 to $278 to close within $13 of new 20 month highs, copper jumped back up near all-time highs at around $2.15, and the CRB Index gained 2.13 to 336.84 to come within 3 points of its 25 year high set last Friday.

More Precious Metals Analysis:

“After starting out soft and appearing to be in a profit taking posture, the gold market managed to rally to new contract highs on heavy speculative buying ahead of the holiday weekend. We have to think that the early economic news on Friday disappointed the gold bulls, as inflation readings were countervailing and the retail sales report was weaker than expected. After seeing some early weakness in the Dollar, the Dollar managed to return to unchanged levels, which limited gold’s early advance, but a steady decline in the dollar after mid-morning appears to spark new life into gold.” - The Hightower Report, Futures Analysis and Forecasting

The U.S. dollar index fell on weak economic data.

Oil traded mostly slightly lower on adequate supplies, but the price did work its way up to near unchanged by the close of trade on worries over Iran’s nuclear ambitions.

Treasuries gained the most in 3 weeks on weaker than expected economic data and worries over Iran.

The Dow, Nasdaq, and S&P started off modestly higher on what was perceived as tame inflation data, but all three indices then fell off in afternoon trade on fears over Iran before rallying back a bit into the close to end mixed and near unchanged.

Among the big names making news in the market Friday were IBM, Tyco, Lucent, GM, Boston Scientific and Guidant, and AIG.

Gold & Silver Stock News Update from GoldReview.com:

Nevsun’s Tabakoto Mine update, Canyon Resources’ update on the status of the McDonald Takings Claim, and MAG Silver’s drilling at Batopilas were among the big stories in the gold and silver mining industry making headlines Friday.

All of Friday’s gold and silver stock news:

Majescor Resources Acquires Gold Project in Madagascar - More
- January 13, 2006 | Item | E-mail

By: Chris Mullen, Gold Seeker

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