Investorideas.com newswire, commentary for mining sector

Tuesday, February 28, 2006

Iraq Influence on Gold Prices Once Again

The technicals are looking down, but the fundamentals have hormones," said Julian Phillips, an analyst at GoldForecaster.com.

From CBS Market Watch:

"Gold futures closed out last week with a 1% gain, prompting some traders to take profits, but fresh violence in Iraq and the recent bombing at an oil refinery in Saudi Arabia -- among other things -- continue to boost the metal's safe-haven status. "
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BE50DD819%2D8526%2D4DE1%2D8915%2D2E98280178BA%7D&dist=newsfinder&siteid=mktw&link=&keyword=gold

Monday, February 27, 2006

Technical Talk, With Merv Burak

In his weekly spot on Kitco.com, Merv gives us the goods, on where he sees gold for the short and long haul:

For week ending 24 Feb 2006

"Despite a few volatile days the four days of trading this past week were basically lateral. Unfortunately, we may be in for a period when sudden world events may command the attention of gold speculators so be prepared for possibly more than normal volatility."

GOLDLONG TERM

"Well, the sky still hasn’t fallen so disaster is still not yet upon us, but who knows what tomorrow will bring. Looking at the long term charts of gold, P&F or the various bar charts, they all seem to look the same with barely any hint of trouble ahead. It’s only when you look deeper that things start to get murky. The P&F chart is still far from any reversal point but also some distance from new highs. The trend may be more lateral for some time, within wide up and down yo-yo moves. Despite what I may think, we still have that very bullish momentum reading that has caused previous moves to come to an end and take several months before recovering. When will it really start its reaction period? All indications are that it has started but the charts are just not highlighting it yet. Things are more obvious on shorter term charts."

Friday, February 24, 2006

What's Happening with the Silver ETF?

From 'Safehaven Preservation of Capital'

"Will the SEC approve the ETF? I think so. The reason is that since the gold ETF's were approved, there is little legal justification for a denial. Without legal grounds upon which to base a denial, how can the SEC deny it? The Silver User's Association's plea contained no legal basis for a denial, just a whining anti-free-market hypocritical, self-serving, short-sighted, wrong-headed, rant.

When will it be approved? I don't know.

Is it overdue? I don't think so. Barclays filed in the summer of 2005, and we might have to wait until the spring or summer of 2006!"

What's Happening with the Silver ETF?

From Safehaven Preservation of Capital

"Will the SEC approve the ETF? I think so. The reason is that since the gold ETF's were approved, there is little legal justification for a denial. Without legal grounds upon which to base a denial, how can the SEC deny it? The Silver User's Association's plea contained no legal basis for a denial, just a whining anti-free-market hypocritical, self-serving, short-sighted, wrong-headed, rant.

When will it be approved? I don't know.

Is it overdue? I don't think so. Barclays filed in the summer of 2005, and we might have to wait until the spring or summer of 2006!"

Tuesday, February 21, 2006

CNN Money Reports

Two weeks of gains

Markets manage second 'up' week on bets that war is delayed; next week heavy on economic data.February 21, 2003: 8:03 PM EST

NEW YORK (CNN/Money) - U.S. stocks managed to close higher for the second week in a row on gains Friday, as investors bet that a U.S.-led military attack on Iraq is still a few weeks away. But next week's market may not be so lucky.

Although few analysts expect any Iraq resolution in the next few weeks, market participants will have plenty of other issues to keep them distracted.

Next week is again heavy on economic reports. Existing home sales and consumer confidence data are both due Tuesday. Thursday brings reports on durable goods orders and new home sales. Friday is a doozy: reports are due on preliminary fourth-quarter gross domestic product, the revision of the University of Michigan's consumer sentiment index, and regional manufacturing activity.

Sunday, February 12, 2006

News from FX Street

Metals

Nice rebound on Gold (GCJ6) yesterday to retest the $572 level but we had some heavy profit taking during the Asian session sending the metal back to the $560 level. Look for direction to come from crude Oil and Iran developments. We could see a usual short covering before the week end. Intraday: We suggest to Buy at $560.50; target $567 stop $559.30.

source: http://futures.fxstreet.com/Futures/content/100290/content.asp?menu=commodities&banner=saxo

Thursday, February 09, 2006

Gold Spurred On by Jeweler Purchasing, Feb. 9

When gold fell February 7th by a decline of 3.8%, seeing the biggest decline in prices in over eight years, purchasing of the metal began to take off. With the demand in China already rising, gold purchasers saw this as an ideal opportunity to pick up the pieces, while the price was right.

As a market reaction to this event, according to sources at Bloomberg, "Gold for immediate delivery rose as much as $8.22, or 1.5 percent, to $559.67 an ounce. It traded at $558.59 as of 10:20 a.m. local time. "

Federal Reserve Chairman Alan Greenspan was quoted as saying that last week's high commodity prices had less to do with inflation and high commodity prices. It was implied that investors are buying gold as a haven due to "threat of international conflict."

Wednesday, February 08, 2006

Bloomberg, Feb. 7

Gold Falls Most Since '04 as Oil's Drop Eases Inflation Concern

Feb. 7 (Bloomberg) -- Gold fell the most in two years in New York after a drop in the cost of oil eased speculation that inflation will accelerate and erode the value of assets including equities.

Before today, gold had surged 38 percent in the past year, reaching a 25-year high of $579.50 on Feb. 2, as rising energy prices increased the precious metal's appeal as a hedge against inflation. Crude oil fell today on speculation U.S. oil supplies are large enough to cushion the market from any disruption in supply from Iran, the world's fourth-largest producer.

``The oil market started this all off and gold was reacting in kind,'' said Brian Hicks, who helps manage $3.2 billion at U.S. Global Investors Inc. in San Antonio. ``We saw a lot of fund buying in January and we knew that was going to taper off at some point. We've clearly lost some momentum.''

Gold futures for April delivery fell $19.50, or 3.4 percent, to $554.80 on the Comex division of the New York Mercantile Exchange, the biggest drop since January 2004.

Gold for immediate delivery in London fell $18.70, or 3.3 percent, to $551.20, the biggest drop since April 2004, after falling to $550.35. The metal has gained almost 7 percent this year, after advancing 18 percent last year.

Tuesday, February 07, 2006

"Gold is forecast to average $618 a troy ounce in 2006 - with a high of $760 an ounce, and a low of $520.75 - according to UK-based consultancy TheBullionDesk.com. With Ross Norman from TheBullionDesk.com."

From the La Times, Tuesday February 6th.

Tuesday's Metal Prices
By The Associated Press
NEW YORK — Spot nonferrous metal prices Tuesday



Aluminum - 117.7 cents per lb., London
Copper - 239.00 cents Cathode full plate, U.S. destinations. Copper 228.75 cents per lb., N.Y. Merc spot Tue. Lead - $1303.00 per metric ton, London Metal Exch.
Zinc - 112.08 cents lb., delivered.
Gold - $558.70 Handy & Harman (only daily quote).
Gold - $551.00 troy oz., NY Merc spot Tue.
Silver - $9.420 Handy & Harman (only daily quote).
Silver - $9.380 troy oz., N.Y. Merc spot Tue.
Mercury - $700.00 per 76 lb flask, N.Y.
Platinum -$1075.0 troy oz., N.Y. (contract).
Platinum $1061.70 troy oz., N.Y. Merc spot Tue. n.q.-not quoted, n.a.-not available r-revised

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