Post by unlawflcombatnt on Oct 5, 2010 12:39:02 GMT -6
All precious metal prices (Gold, Silver, Platinum, & Palladium) jumped early today starting just before 4 AM. Apparently the move was triggered by news of the Bank of Japan cutting its lending rates, coupled with the anticipation of Qualitative Easing by the US Federal Reserve.
graph from Kitco:
Story from Market Watch:
Gold hits new record
Tues, Oct. 5, 2010
By Claudia Assis, Sue Chang and Nick Godt,
"Gold hits new record after Japan cuts rates
Silver returns to 30-year high; copper rises to 26-month peak
Gold futures hit a new record on Tuesday after the Bank of Japan cut its official lending rate for the 1st time in nearly 2 years, fueling expectations of similar quantitative easing in the United States.
Silver returned to a 30-year high, and copper traded at a 26-month high.
Gold for December delivery (COMMODITIES:GCZ10) rose $24.30, or 1.9%, to $1,341 an ounce on the Comex division of the New York Mercantile Exchange.
Japan returns rate to nearly zero The Bank of Japan caught markets by surprise with a $418 billion program to spur economic growth and cut interest rates to virtually zero.
It earlier hit an intraday high of $1,333.80 an ounce.
“Gold is rising as Johnny-come-lately people get into the market,” said Charles Nedoss, senior market strategist at Olympus Futures Inc.
“People are starting to see gold as somewhat of a currency, particularly with the world flooded with cheap money,” he added.
The Bank of Japan’s move surprised markets and, alongside expectations the Federal Reserve will make a similar move to provide further monetary stimulus, supported gold, said analysts at GoldCore in a note. Read more about Japan’s rate cut.
The yen slumped 0.6% against the euro. But the dollar remained under pressure, given expectations that it’s now the Fed’s turn to soon embark on further easing of its own.
Weakening currencies tend to boost gold’s appeal by making metals and other commodities cheaper.
The U.S. unit (dollar) was down 0.4% against the yen and the dollar index (BOARD:DXY) , which measures the dollar against a basket of 6 major currencies, was down 0.8%....
Silver for December delivery (COMMODITIES:SIZ10) surged 70 cents, or 3.2%, to $22.73, recapturing its highest level in 30 years.
Copper rose to its highest since late July 2008, with the December contract (COMMODITIES:HGZ10) trading up 6 cents, or 1.7%, to $3.73 per pound.
Analysts at Goldman Sachs see “periods of extreme tightness in the copper market in 2011” and price volatility for copper.
Copper prices could also stay high on the “combination of rising global trend growth driven by (emerging-markets) urbanization and a challenging medium-term supply growth outlook,” they added....
In the near-term, gold is expected to remain bullish given the strong trend.
If gold closes up this week, it will have closed higher 9 out of past 10 weeks, according to Nedoss.
“Expect gold to test 1,350 this week. May even rise to $1,400 within a short-term if there isn’t much resistance at $1,350,” he said."
graph from Kitco:
Story from Market Watch:
Gold hits new record
Tues, Oct. 5, 2010
By Claudia Assis, Sue Chang and Nick Godt,
"Gold hits new record after Japan cuts rates
Silver returns to 30-year high; copper rises to 26-month peak
Gold futures hit a new record on Tuesday after the Bank of Japan cut its official lending rate for the 1st time in nearly 2 years, fueling expectations of similar quantitative easing in the United States.
Silver returned to a 30-year high, and copper traded at a 26-month high.
Gold for December delivery (COMMODITIES:GCZ10) rose $24.30, or 1.9%, to $1,341 an ounce on the Comex division of the New York Mercantile Exchange.
Japan returns rate to nearly zero The Bank of Japan caught markets by surprise with a $418 billion program to spur economic growth and cut interest rates to virtually zero.
It earlier hit an intraday high of $1,333.80 an ounce.
“Gold is rising as Johnny-come-lately people get into the market,” said Charles Nedoss, senior market strategist at Olympus Futures Inc.
“People are starting to see gold as somewhat of a currency, particularly with the world flooded with cheap money,” he added.
The Bank of Japan’s move surprised markets and, alongside expectations the Federal Reserve will make a similar move to provide further monetary stimulus, supported gold, said analysts at GoldCore in a note. Read more about Japan’s rate cut.
The yen slumped 0.6% against the euro. But the dollar remained under pressure, given expectations that it’s now the Fed’s turn to soon embark on further easing of its own.
Weakening currencies tend to boost gold’s appeal by making metals and other commodities cheaper.
The U.S. unit (dollar) was down 0.4% against the yen and the dollar index (BOARD:DXY) , which measures the dollar against a basket of 6 major currencies, was down 0.8%....
Silver for December delivery (COMMODITIES:SIZ10) surged 70 cents, or 3.2%, to $22.73, recapturing its highest level in 30 years.
Copper rose to its highest since late July 2008, with the December contract (COMMODITIES:HGZ10) trading up 6 cents, or 1.7%, to $3.73 per pound.
Analysts at Goldman Sachs see “periods of extreme tightness in the copper market in 2011” and price volatility for copper.
Copper prices could also stay high on the “combination of rising global trend growth driven by (emerging-markets) urbanization and a challenging medium-term supply growth outlook,” they added....
In the near-term, gold is expected to remain bullish given the strong trend.
If gold closes up this week, it will have closed higher 9 out of past 10 weeks, according to Nedoss.
“Expect gold to test 1,350 this week. May even rise to $1,400 within a short-term if there isn’t much resistance at $1,350,” he said."