Precious metals were hit the hardest last week with Gold liquidating more than $65 from $1,120 to $1,060, Silver losing $1.50 from $16.50 to $15.00, and Platinum from $1,575 to $1,500 as Greece's debt problems put a significant dent in the...
The Metals Pit Review
For the week of February 8th, 2010
By PitGuru Daniel Cronin
Precious metals were hit the hardest last week with Gold liquidating more than $65 from $1,120 to $1,060, Silver losing $1.50 from $16.50 to $15.00, and Platinum from $1,575 to $1,500 as Greece's debt problems put a significant dent in the outlook of the Euro and the USD rallied against this market and other major currencies taking out the investment appeal for the metal. This week I believe you could see some short covering and profit taking from the significant downward move in these markets as you can get a bit of a dead cat bounce after sharp sell-offs like these. Gold has now broken the support on the downside, breaking the big area of $1,070 and Silver coming off of the $15.50 level. Look for the first few days of the week for these markets to rebound and then look to see how the USD trades against other currencies.
Copper had just an awful week confirming the downside move as it blew right past the support of $3.00 and $2.90 to a three-month low of $2.80 on concern that U.S. job losses and European budget gaps will stifle a global economic recovery. The downside looks to have more room ahead to at least the next support of $2.65. There I believe Copper is an attractive buy with some bull plays as prices have not fallen below this level since mid July.
***chart courtesy Gecko Software’s Track n’ Trade Pro
Past performance is not necessarily indicative of future results.