Class Is Now In Session

Good Day,

Speculation early this morning was that U.S. employers likely have cut only 150,000 jobs in the month of October, a figure which would be the lowest in more than a year. The worst labor-market slump since the 1930s is now seen as possibly bottoming out, and the possibility of future consumer spending is now seen as adding to US and global economic growth.

The actual numbers, however showed a bit of a different reality, as the U.S. economy shed 190,000 jobs last month, lifting the unemployment rate above the 10% mark (to 10.2%) for the first time in 26 years, the Labor Department said. Economists were looking for the unemployment rate to rise to 9.9%

Following yesterday’s brief pause and minuscule retracement, gold prices remained within striking distance of the $1100 level early this morning, as speculative interest was banking on Friday’s US jobs report to yield further fuel for what has now become a routine spec fund-driven play. That is, when/if economic news is good, the dollar sinks and risk appetite reignites on the perception that such good news will drive the Fed to keep handing out essentially free money with which to go out and buy… stuff. Read the rest of this entry »

New York gold futures rose $2 on Thursday to mark a fourth day of gains. The US dollar failed to make serious inroads against other currencies following the Fed’s decision yesterday to keep interest rates unchanged. Silver gained a sliver. Platinum fell. In other markets, crude oil retreated for the first time in four days while US stocks rallied with the Dow moving back above 10,000.

New York precious metal figures follow:

• Silver for December delivery gained a half penny to $17.410 an ounce. It ranged from $17.220 to $17.530.

• Gold for December delivery advanced 0.2 percent to $1,089.30 an ounce. It ranged from $1,084.30 to $1,095.20.

• January platinum fell $6.40, or 0.5 percent, to $1,362.90 an ounce.

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New York gold futures reached a fresh all-time high on Wednesday after the Federal Reserve kept interest rates and its monetary policy unchanged, which helped push the US dollar lower and made the yellow metal more attractive. Silver and platinum followed along, as did crude oil. For a second straight day, US stocks closed mixed.

New York precious metal figures follow:

• Silver for December delivery rose 22.5 cents, or 1.3 percent, to $17.405 an ounce. It ranged from $17.105 to $17.635.

• Gold for December delivery advanced $2.40, or 0.2 percent, to $1,087.30 an ounce. It ranged from $1,080.50 to $1,098.50.

• January platinum climbed $13.10, or 1.0 percent, to $1,369.30 an ounce.

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New York gold futures surged to a new all-time high Tuesday as news hit the streets that the IMF sold 200 metric tons of gold to the Reserve Bank of India. Platinum rose as well, while silver soared to reach back above $17 an ounce. In other markets, crude oil ended higher and US stocks closed mixed.

New York precious metal figures follow:

• Silver for December delivery surged 74 cents, or 4.5 percent, to $17.180 an ounce. It ranged from $16.245 to $17.35.

• Gold for December delivery jumped $30.90, or 2.9 percent, to $1,084.90 an ounce. The yellow metal ranged from $1,055.50 to $1,088.50.

• January platinum rose $18.10, or 1.4 percent, to $1,356.20 an ounce.

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Will Work For Less

Good Day,

Gold prices pushed higher overnight, breaking above the $1050 mark and touching a high near $1058 per ounce. The metal recovered from Friday’s indecisiveness and actually showed a bit of a de-couple from the dollar - while still rising in tandem with oil prices - and a return to contrary behavior against stocks as the Nikkei average slumped by 231 points during the nighttime hours. Today’s action - indeed, the rest of the week’s- will be punctuated by a plethora of US economic statistics and by the FOMC meeting’s results (even if only verbal ones).

A verbal nod - of sorts- was given to gold by an ECB official today, at the LBMA conference in Edinburgh, Scotland. While clearly dismissing the wishful thinking that gold will once again become the peg to which fiat currencies are to be anchored, the speaker highlighted that which we have said for years: that gold as a diversifier of risk, and as the insurance policy in the basement, has a role, and will continue to have a role. Just not the role that is being envisioned by the TEOTWAWKI crowd. NASDAQ reports that: Read the rest of this entry »

GDP: Great Day to Play

Good Day,

Friday’s market sessions in precious metals started off on a tamer note, following the best gains in gold in three weeks. Explanations follow. The recapture of the $1045 area is noteworthy, although analysts we polled during the wee hours overseas are trying to define the move as everything from a ‘one-hit wonder’ to the ‘re-ignition of what we saw during most of October.’

The Bloomberg weekly survey foresees weaker gold prices come next week - not by a large margin (57% bearish)- but still focusing on a potential comeback by the US currency, the early signs of which became visible this past Monday. Demand for the yellow metal once again slipped away in India, following signs of life during the earlier part of the week when values came close to $1025 per ounce. The country recorded its sixth straight month of declining gold imports, despite a decent gain during September - in anticipation of festival-related sales.

New York spot dealings opened with a $2.60 loss in gold bullion, which was quoted at $1043.20 bid, as against a euro-dollar seen at $1.4798 and the USD index steady-to-higher, at 76.05, with little in the way of fresh news thus far this morning. Oil prices gave back about 50 cents of their whopper-sized Thursday gains, slipping to $79.32 per barrel. Risk traders took a latte break this morning, and this gave the dollar a moment to try to re-group. Read the rest of this entry »

Gold and other precious metals spiked Thursday, as did crude oil and US stocks following a report by the Commerce Department saying the economy expanded at a 3.5 percent annualized pace in the third quarter. Gold’s rise broke a losing streak that had extended to five days. The Dow and S&P enjoyed their best one-day jumps in three months.

New York bullion figures follow:

• Silver for December delivery jumped 41.5 cents, or 2.6 percent, to $16.655 an ounce. It ranged from $16.12 to $16.71.

• Gold for December delivery advanced $16.60, or 1.6 percent, to $1,047.10 an ounce. The yellow metal ranged from $1,048.40 to $1,026.90.

• January platinum surged $31.30, or 2.4 percent, to $1,338.20 an ounce.

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Gold ended slightly lower Wednesday, marking the fifth consecutive day the yellow metal has declined. Again cited as the catalyst for the loses was a rallying US dollar. Silver and platinum also fell, as did crude oil which plunged 2.6 percent. US stocks followed along, with the three major indexes tumbling between 1.2 percent and 2.7 percent.

New York precious metals figures follow:

• Silver for December delivery fell 30 cents, or 1.8 percent, to $16.240 an ounce. It ranged from $16.155 to $16.77.

• Gold for December delivery declined $4.90, or 0.5 percent, to $1,030.50 an ounce. The yellow metal ranged from $1,042.60 to $1,027.10, which is the lowest price since Oct. 6.

• January platinum ended down $12.10, or 0.9 percent, to $1,306.90 an ounce.

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New York gold futures ended lower Tuesday for the fourth straight day as the US dollar advanced on news of a decline in consumer confidence. Silver was hit exceptionally hard for the second straight day, falling more than 3 percent. Platinum declined as well. In other markets, crude oil finished 1 percent higher and US stocks ended mixed.

New York precious metals figures follow:

• Silver for December delivery plummeted 55.5 cents, or 3.2 percent, to $16.540 an ounce. It ranged from $17.250 to $16.500.

• Gold for December delivery declined $7.40, or 0.7 percent, to $1,035.40 an ounce. The yellow metal ranged from $1,044.30 to $1,032.90, which was the lowest level since Oct. 6.

• January platinum fell $26.80, or 2.0 percent, to $1,319.00 an ounce.

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Fun(d) and Games

Good Day,

Dollar weakness was manifest once gain as the new trading week got underway, with the US currency recording a fresh 14-month low against the euro overnight. The greenback also slipped on the trade-weighted index, losing 0.13 to 75.31 at last check. This morning’s macroeconomic news reveals a mixed bag of confidence, one that is dependent on geography.

German consumer sentiment slipped for the first time in more than a year, as locals worry about continuing job losses. Over in the UK, in the midst of a rather nasty economic picture, business confidence levels rose to an 18-month high based on the latest survey.

New York spot bullion trading got off to a start slightly in the negative column for gold. The yellow metal fell $1.40 at the start of the session, quoted at $1053.40 an ounce, as against the aforementioned drop in the dollar index, and its small decline consisted of  about an 80-cent gain on dollar weakness-induced gain versus about $2.20 worth of declines on market-based selling. Thus, the net starting price outcome on the day. Read the rest of this entry »