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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (46358)	12/1/2005 12:35:05 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Inflationary boom action, guess Bully still has the stash to pay for this as well? Does it all (and I would definitely include paper liabilities (bonds) all crash at once? Hard to believe a pause or talk of an ease is justified in this climate. A big liquidity drain makes complete sense though, the Fed is expanding it's SOMA account way too rapidly (8 1/4% annualized post-Katrina): Gold hits 18-year high above $500 Copper keeps rising in record territory By Myra P. Saefong, MarketWatch Last Update: 11:37 AM ET Dec. 1, 2005 SAN FRANCISCO (MarketWatch) -- Gold futures climbed to an 18-year high above $500 an ounce Thursday and copper prices rose to new heights for a fourth-day in a row to trade at more than $2.13 a pound. "The strength in the metals sector is now undeniable as gold crosses key technical barriers and approaches levels it hasn't seen in decades," said veteran commodities trader Kevin Kerr, noting that the market is seeing "buying strength from every direction -- funds, physical, futures." "The demand is real and at these levels of pricing, we expect to see a sustained rise in 2006," said Kerr, who also edits Global Resources Trade, a newsletter service of MarketWatch, the publisher of this report. Overall, "the short squeeze is on and bearish metals traders are certainly feeling the pinch," he said. December gold was last at $501 an ounce in New York, up $6.40, or 1.3%, on the New York Mercantile Exchange. The contract, which lost $4.50 on Wednesday, traded as high as $502.40 earlier -- a level a front-month contract hasn't reached in 18 years. In overnight trading sessions the contract touched $500 Tuesday evening and climbed as high as $502.30 Monday night. December silver tacked on 14 cents to trade at $8.42 an ounce. That's the highest futures price since 1987. At the same time, December copper futures continued to reach record levels, trading up 5 cents at $2.125 after climbing above $2.13. Elsewhere in the metals market Thursday, January platinum added $13.60 to stand at $994 an ounce after losing over $23 during Wednesday's session. It climbed as high as $1,004 Monday, its highest since March 1980. Sister metal palladium saw its December contract climb $9.50 to $265 an ounce. Prices are trading around their highest levels since April 2004. Inventories of copper, silver and gold were unchanged as of late Wednesday, according to Nymex. Copper supplies were at 3,681 short tons, silver at 117.6 million troy ounces and gold at 6.61 million troy ounces.