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The Metals Pit Review
For the week of August 9th, 2010
Precious metals gaining some recognition after rallying, albeit in very minimal increments for the past two weeks now after getting liquidated to $1,157 in gold. Gold has traded up to $1,208 and looks to be testing the resistance of the $1,215-$1,2020 area. What’s helping the precious metals right now is the weaker USD. The dollar traded near the weakest level in three months against the euro after a U.S. report showed companies hired fewer workers than forecast, signaling the labor-market recovery will be slow to take hold. The dollar traded at $1.3284 per euro from $1.3280, after touching $1.3334 on Aug. 6, the weakest level since May 3. (1) I think this looks like it will continue the trend and all of the shorts who were short the USD are now getting out and squeezing this market a bit. I like the silver play and I am looking for this market to go to $19. I think gold will have a tough time breaking through the $1,215 level. I am looking for sellers to hold this market below here.
Copper still going strong even after a bit of a speed bump Friday with the non farm payrolls. The market looked like it would be headed to $3.30, liquidating a bit as the S&P was down more than 15 points but suddenly had a nice comeback in the afternoon to keep the base metal afloat. $3.40 is a very big number but right now the market trades only a few pennies shy of that at $3.38. Stockpiles however are shrinking on the LME and this is what’s causing a lot of the buying recently other than just the rallying equities. I am looking for copper to test the $3.40 mark early in the week.
Chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.
08-10-2010, 04:07 AM
The Metals Pit Review for The Week of August 9th, 2010
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