February 14, 2006
INDUSTRY BULLETIN – GOLD SECTOR: GOLD PULLS OUT OF STEEP DECLINE
Dear Shareholder,
In our ongoing efforts to provide broader communications and market information, we are pleased to provide you, for your interest, with Industry Sector Bulletins discussing current market opinions and/or conditions that affect the price, use and supply & demand for gold
Yours truly,
AGORA Investor Relations
Gold pulls out of steep decline
By Myra P. Saefong, MarketWatch
Last Update: 10:05 AM ET Feb 14, 2006
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD811B8BD%2D0373%2D4454%2D9F5E%2DE2040945E7C5%7D&doctype=103
SAN FRANCISCO (MarketWatch) -- Gold futures rose as much as 1% Tuesday morning on the heels of a two-session losing streak that amounted to $26 an ounce.
Gold for April delivery was last trading up $2.60 at $544.70 an ounce on the New York Mercantile Exchange. The contract touched a high of $548.
``The overnight action in the gold market has brought the April contract to the 50-day moving average which now stands at $541.70,`` said Dale Doelling, chief market technician at Trends In Commodities. ``This very strong support area is holding for now.``
From here, traders will look towards the week`s end to see if that 50-day moving average ``can hold before they can feel semi-comfortable the worse is behind them,`` said Peter Grandich, editor of the Grandich Letter.
April gold closed at its lowest level since Jan. 5 on Monday, caught up in a broader consolidation of commodities.
Traders said the correction was helped by the fact that some of the political stories that have been grabbing headlines recently -- Iran`s nuclear research, the row about editorial cartoons portraying the prophet Muhammad, the U.S. trade deficit -- moved off the front pages. Most analysts remain bullish on gold.
``Longer-term fundamentals remain positive, amid steadily accelerating demand from the major emerging economies and constrained output levels,`` said research firm Action Economics.
On the supply side, copper inventories were down 1,588 short tons at 42,777 as of late Monday, according to the New York Mercantile Exchange.
Gold stocks were down 2,411 troy ounces at 7.47 million troy ounces and silver supplies were up 9,750 troy ounces at 125.5 million troy ounces.
March silver futures mirrored the strength in gold, trading up 11.7 cents, or 1.3%, at $9.23 an ounce. April platinum gained $3.30 at $1,018 an ounce and March palladium added $2.95 at $278 an ounce.
March copper also moved higher, climbing 3.2 cents at $2.266 a pound.
Indexes rise
Meanwhile, after falling to multiweek lows in the previous session, indexes that track the metals-mining sector reversed course.
0 members recommend this.
