Why Gold Remains Unscathed…
Gold
managed to pass through the end-of-quarter liquidation potential without a
profit-taking binge, probably a function of the continued fear spinning out of
the equity market. With bond yields at 44-year lows and the
prospect of global rate cuts increasing, there is certainly cause for holding
flight-to-quality investments. A number of traders remain
bullishly biased but the anticipation of war with Iraq is probably not
enough to fuel prices higher, on top of the existing overly long position.
Dec. gold
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Dec. Silver
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ounce, up 1 cent. In Dec. copper
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above its 66.00 a pound support level. This was a .60 loss on the session.
The Dec. S&P 500 futures
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actually fell below key support at 800, before pulling up to close at 807, down
13.50 or 1.65%. The Nasdaq 100 for Dec.
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to 822. The index futures saw positive gains in the
beginning of trade, but then fell to the negative side and closed near the
lows of the day.
Stocks tumbled, finishing a sixth straight losing week and
driving the S&P 500 Index a five-year low.
The drop came as companies including Boeing
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Northern Trust
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third-quarter results were below forecasts. Stocks extended declines after a
California jury ruled Philip Morris
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damages to a smoker who contracted lung cancer.
In the energy markets, crude oil attempted to
break back above the $30 a barrel mark, but failed and ended lower. Nov. crude
oil
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gasoline
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natural gas
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In the grains, Nov. soybeans
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probing for a harvest low but there is no sign yet that prices are too cheap or
that the fund selling is exhausted. New buyers need to hold off for some
confirmation that a harvest low is in place. The market is likely to build a
good South American weather premium, once the low is in, so a significant rally is
expected. November soybean key retracement support comes in down at 528 3/4.
Nov. beans closed positive at $5.39 a bushel up 1.75 cent.
December corn
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is consolidating above the 250 level, ahead of next week’s key USDA report. The
stocks report last week indicated that summer livestock feed demand
was decent and the 40% jump in hog prices off of the
lows should be a sign of improving demand. Support for December corn comes in at
253 1/2 with 258 1/2 and then 267 as resistance. Corn ended the session at $2.58
a bushel up 3.50 cents.
A new variable has
been thrown into the wheat market.
With West coast and Gulf ports closed, and a
weakening demand trend in exports, fund sellers were active yesterday with the
first move and close under the 40-day moving average for December wheat
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will likely continue to step aside. Dec. corn is trading at $3.77 a bushel, up
2.25 cents. The close was below the 38% retracement line. Support is at 3.70
with secondary support at 361.