With good news seeming to come from all corners of the global economy, Matt Hougan and Dave Nadig ponder what this means for gold investors. Is good news actually bad?
Gold might make all the headlines, but HAI caught up with one of silver's notorious bulls to hear the case for ag, including: why silver is a 'good times' metal; its uncommon supply issues; and just what is the "right" ratio with gold, anyway?
The equity market's gotten a big boost by earning surprises such as last Thursday's early profit report from Wells Fargo & Co. (NYSE: WFC). The Dow Jones Industrial Average spiked 250 points, or 2%, on the news that the bank expected a $1 billion increase from year-ago earnings.
There's a continuous - no, let me rephrase that - there's an unending battle over the merits of technical analysis among traders. Those who forecast price trends using market fundamentals often think chartists are using the equivalent of chicken entrails to predict a commodity's future.
I'm not going to step into the line of fire in this battle...
This past Tuesday, the flagship S&P 500 stock index (SPX) surged 6.4% in its biggest daily rally since rocketing out of its panic low in late November. Gold, which was flat that morning, suffered increasing selling pressure as the day marched on. As the SPX strengthened, gold weakened in an inverse linear fashion.
Monday, March 9, 2009
by Jim Stanton, Technical & Quantitative Analyst, Smart Profits Report
When I last wrote to you two weeks ago, the Dow Jones Industrial Average (^DJI) and Dow Jones Transportation Index (^DJT) were the only two indexes that had traded below their November 2008 lows.
Just over a week ago, I wrote about the Central GoldTrust (NYSE: GTU) and how its premium suggested a little too much bullishness toward precious metals.
It's short-term stuff, but gold did keep pulling back from $940 at the time to $900 before its latest bounce attempt. What happened on that bounce? Even more bullishness, according to an all-time high GTU premium of 33% last Thursday...
During late 2008's unprecedented financial-market panic, gold got something of a bum rap. Since this metal didn't soar during the stock chaos like most of its investors expected, many assume something must be wrong in gold-land. But gold ultimately did hold its own, up 2.1% in Q4 while the S&P 500 plunged 22.4%.
As the financial services giants get cut down to size, metals are now the biggest source of mergers and acquisitions on Wall Street, according to a report on Bloomberg.
Lets start the coming week off with platinum as it continues to record all time highs. After finishing off last week at over $2000 an ounce, Monday morning trading on the Tokyo Commodity Exchange saw yet another peak reached as South Africa’s energy woes continue to hit supply expectations.
