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| | The Gold & Silver precious metals Network is not currently active and cannot accept new posts | | February Gold futures gained $7.40 to close at $633.30 | Views: 515 | | Jan 18, 2007 2:46 pm | | February Gold futures gained $7.40 to close at $633.30 | # |
me4you | | Gold: February Gold futures gained $7.40 to close at $633.30, off a range of
$620.80 to $634.80, low to high. Gold was propelled to a two-week high in step
with the increases in Crude Oil prices and the decline in the US Dollar versus
major pairs. Gold was also supported by today’s PPI numbers which were deemed
inflationary, as finished goods prices increased .9% in December according to
the Labor Department. The high PPI numbers follow the three-decade high
increase of 2% for the month of November. Gold turned higher as Crude bounced
off its 20-month low of $52.30 intra-day and continued to close strong on the
day.
Silver: March Silver futures rallied 26 ½ cents to settle at $12.89 an ounce
in lower Manhattan today. The range on the day was 56 cents, with $12.43 and
$12.99 marking the low and high respectively. Today’s 56-cent range was the
greatest in the past two weeks. Silver’s rally was due in part to the same
data that pushed Gold higher. Higher inflation and crude prices tend to help
prop up metal prices, as evidenced by today’s auction. The declines in open
interest from the sell-off that began at the beginning of the year indicate that
the weak bulls are out of the market. Resistance still stands at the
psychologically significant $13 level. Carl Christensen, XPRESSTRADE analyst
The Labor Department released higher than expected PPI data for December,
sending U.S. Treasuries lower. Prices paid to U.S. producers – the
inflationary component – rose a greater-than-expected 0.9% in December, led by
higher energy and food costs. This month's oil slide is not included in this PPI
figure. This hawkish inflationary data drove March 10-Year Notes into the 106
handle for the first time since late October. Looking at the daily candlestick
chart, we see an outside day lower close, leaving the door open for more
downside punishment. If tomorrow’s CPI shows comparable inflationary
pressure, expect Notes to test the weekly low at 106-19. Here the market should
find a base for the time being and absorb some of these recent loses. On the
upside, Notes will begin to show life with a close above the market’s previous
base at 107-12. The March 10-Year Note lost 7.5 ticks to close at 107-00. John
Grigus, XPRESSTRADE analyst
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