Yep, so when is the time to load up 100%? A nice big drop would be handy to confirm things. John Person seems to agree.
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Euro strength propels gold prices
Industrial demand lifts copper futures to a six-year high
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 4:40 PM ET Dec. 2, 2003
SAN FRANCISCO (CBS.MW) -- The gold juggernaut of 2003 forged ahead Tuesday, with future prices closing near an eight-year record, as strength in the euro helped stoked investment demand for the precious metal.
February gold climbed 80 cents to close at $404.60 an ounce, the metal's highest closing price since February 1996. Other metals futures closed mainly higher, with copper ending the day at a six-year high.
In the stock market, gold industry indexes again shined at their highest levels in at least six years.
The euro "quickly raced to a lifetime high" of $1.209 after buy stops were triggered around $1.203, said James Moore, an analyst at TheBullionDesk.com in London. See Currencies Report.
The sharp climb in the euro, which boosts dollar-denominated gold's investment demand and value overseas, took February gold to a high of $407 an ounce on the New York Mercantile Exchange.
John Person, head financial analyst at Infinity Brokerage Services urged caution among traders at this high price level.
"The gold market may be a great long-term investment, but in the near term, it is due for a correction," he said.
"I would still be waiting to be a buyer ... but I do not see value in being a buyer up at this level right now," he added.
Copper futures at six-year high
Also on the Nymex, copper prices climbed for the third straight session, touching level not seen since 1997, as another batch of economic reports signaled an improving climate.
March copper tacked on 1.3 cents to close at 97.4 cents a pound. It hasn't closed at this level since October of 1997.
Copper supplies were down 625 short tons at 288,632 short tons as of late Monday, according to Nymex.
Gold and silver inventories were unchanged from the previous session, at 3.06 million and 124.5 million troy ounces, respectively, Nymex said.
Silver, platinum, and palladium futures prices also gained ground.
March silver climbed by 5 cents to close at $5.52 an ounce. It already climbed near a four-year intraday high Monday at $5.55.
January platinum climbed by $5.80 to close at $779.80 an ounce. The March contract for palladium closed at $194.60 an ounce, up $3.60.
Anglo Platinum, the world's biggest platinum miner, plans to provide the results of a review of its expansion program for its South African platinum operations to shareholders Thursday, according to Reade.
Metals stocks log five-session climb
In the equities arena, metals mining stocks followed commodities higher, to mark a five-session winning streak.
Tracking the metals sector as a whole Tuesday, the Philadelphia Gold and Silver Index (XAU: news, chart, profile) closed at 112.29, up 0.1 percent, and the CBOE Gold Index ($GOX: news, chart, profile) rose 0.1 percent to close at 94.15.
The Amex Gold Bugs Index (HUI: news, chart, profile) moved up by 0.5 percent to end the session at 256.84.
All three indexes continued to trade at their highest level in at least six years.
Hecla Mining (HL: news, chart, profile) tacked on 34 cents, or 4.2 percent, to close at $8.41 and Apex Silver Mines (SIL: news, chart, profile) closed at $18.34, up 41 cents, or 2.3 percent.
A new series of gold bullion securities will be listed for trading on the London Stock Exchange starting Dec. 9 under the ticker symbol "GBS," according to Gold Bullion Securities.
A gold bullion security comprises a secured note of nominal value issued by GBS, which carries with it an entitlement to gold bullion held in trust, according to John Reade, an analyst at UB
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