Precious metals quiet on Friday, with prices mixed on the session.
Gold prices slightly lower on the day. The sharp rise in the dollar
vs. the British pound brought some selling, and also their was some profit taking Friday afternoon. We approached resistance at $330
but unable to follow through. We need to rise above that level to turn some trends to the upside. Silver creeping back towards resistance at $4.85 (Dec). Dec gold down .50 at $329. Dec silver
up .037 at $4.822.
An article in the Financial Times of London put pressure on the Pound.
This selling continued throughout the day with prices ending sharply lower. The article quoted some British official as saying that they were going to apply for entry to the EMU, with a target entry of about
2.6 to the D-Mark. Whether this is true or just a rumor from well placed sources is unknown. They are talking the currencies the currencies higher and lower, having a negative impact on the Pound.
Strong seasonal timeframe for the energy markets right now, as the suppliers and wholesalers are buying heating oil to build inventories for the upcoming winter. Crude well above $20 level, could move towards resistance at $21.50. Could see profit taking before the next API report, pullbacks could set up good buying opportunities.
Weak seasonal timeframe for the grain markets. No significant frost in the midwest, keeping bulls on the defensive, wheat futures
fell sharply on news out of Pakistan, pushing Dec wheat thru critical support at $3.59. Look for further selling barring any surprises in
the weather. Soybeans and corn also down.
Japan has always been afraid of inflation, but they have had deflation for quite some time. The question is does Greenspan believe in a pre-
emptive strike against inflation and increase rates, or keep them stable as most people believe? |
