Gold Nears 25-Year High
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The week ended came to a close with two of the month’s most
important economic reports — PPI and Retail Sales. The Producer Price Index
rose much more than expected
(report),
along with Business Inventories which also rose more than expected
(report).
However, Retail Sales rose less than expected
(report).
The news sent Treasuries surging higher, erasing
losses from earlier this week. Meanwhile the US Dollar sold off versus the Euro.
Gold
(Futures Pivots)
rallied to a new contract/multi-year high, boosted
by investor concerns surrounding the situation in Iran.
Chart created with FutureSource Xtra
In the energies, Natural Gas
(Futures Pivots)
fell to an almost 6-month low. The markets inability to bounce from such a
deeply oversold condition may say more about the longer-term direction of
Natural Gas prices than the charts themselves. A bounce seems likely but is yet
to emerge and may only offer a short-term trade.
Chart created with FutureSource Xtra
Sugar (Futures Pivots)
hit a new contract-high amid reports that this year’s harvest will be
significantly lower this 2005.
Chart created with FutureSource Xtra
Staying in the softs, Cotton (Futures Pivots)
posted an impressive day with strong buying throughout the session.
Chart created with FutureSource Xtra
PPI Up 0.9% For Dec.; Core PPI Up 0.1% (report).
Retail Sales Up 0.7% For Dec.; Ex-Autos Up 0.2% (report).
Business Inventories Up 0.5% In Nov.; Sales Up 0.1% (report).
US Nov. Business Inventories Rise 0.5%
Ashton Dorkins