Gold and silver rebounded last week to trade higher even as the USD strengthened to some of the highest levels seen this year on Greece's inability to pay off its debt - and some say are hanging around the edge of...
The Metals Pit Review
For the week of March 1st, 2010
By PitGuru Daniel Cronin
Gold and silver rebounded last week to trade higher even as the USD strengthened to some of the highest levels seen this year on Greece's inability to pay off its debt - and some say are hanging around the edge of bankruptcy. Gold extended to $1,120 last week but has some tough resistance to climb against. Silver moving nicely up the ladder to above $16.60 as this metal is outshining Gold right now.
Gold price will also be deeply affected by the potential Gold Fields strike. The National Union of Mineworkers in South Africa is ready to strike starting March 7th.1 This could lead to another bit of a surge in prices but I do believe you need to take some money off the table here as the Euro keeps on getting pounded leading all other currencies including the USD higher.
Copper prices soared over the weekend to its highest levels this year and opened +20 cents to trade at $3.4850 on the Sunday night session as a tremendous Earthquake hit Chile forcing thousands out of homes and causing chaos among the country. The 8.8 magnitude earthquake in Chile sent copper prices higher on the potential for disrupted supplies from the South American country. Since Chile is the source of a huge portion of global copper supply, this is devastating news and has many concerned. However, one of the larger producers – Coldeco – says it will meet contract obligations with supply from plants in northern Chile.2 I believe you need to sell on the news here and take profit as the $3.50 level is huge and prices will see a heavy load of resistance at that area.
1 http://www.businessweek.com/news/2010-03-01/africa-s-biggest-gold-mines-may-be-shut-by-a-strike-over-test.html
2 http://www.bloomberg.com/apps/news?pid=20601100&sid=aY8OGo4r01Xo