I have good news and bad news...
***1st the good news***
The yield on the thirty-year U.S. Treasury (the "long bond") touched 5.989% on Thursday morning, its lowest reading since January 19, 1996, before ending the day with a moderately higher yield. This marks a bearish key reversal, which in the past has sometimes coincided with a bottom in gold as a small percentage of the money that exits the huge bond market finds its way into precious metals.
***and now for the BAD news******
Gold touched $286 per ounce in the afternoon on Thursday, its lowest spot price since February 25, 1985.
Updated @ 5:35 p.m. EST, Thursday, December 4, 1997.
COMMENTS OF THE DAY: Commodities, including precious metals, ended moderately lower on Wednesday, with gold plunging to its lowest spot price since the cyclical bottom of February 1985. Gold fell six dollars, silver dropped 1.8 cents, platinum was down $4.70, and palladium was lower by $1.45.
According to Market Vane, Inc., as of Wednesday, only 19% of investors were bullish on gold, one of the lowest readings ever recorded for any kind of investment at any time. This exactly marks its 19% reading from February 1985, the last major bottom for gold. |
