Full Metal Market
December gold [GCZ9>GCZ9] turned in another huge rally, surpassing yesterday’s 14.0 surge with a move up of 26.2 to 310.0. Intra-day, gold traded as high as 329.0.
Central banks recently announced an agreement to limit sales of gold over the next five years, eliminating a bearish fundamental that took gold to a 20-year low. Gold came out of a low volatility situation last week, and has placed prominently, or topped, the Implosion-5 List since.
December silver [SIZ9>SIZ9] followed gold’s lead, adding 41.5 to 577. Copper [HGZ9>HGZ9] gained 2.00 to 81.70.
December T-bonds [USZ9>USZ9] fell 21/32 to 113 31/32, pressured in part by higher gold prices. Rising gold has been a harbinger of inflation–and rising interest rates–in times past.
Stock index futures bottomed out at 1:30 ET, spun around and traded back up to the break-even point before closing mixed. December Dow futures [DJZ9>DJZ9] ended 47 lower at 10,358, the S&Ps [SPZ9>SPZ9] ended down 1.40 at 1294.80 and NASDAQ 100 futures [NDZ9>NDZ9] held ground gained in afternoon trading, ending 13.00 higher at 2464.00.
The action in gold diverted attention from currencies: December dollar index futures [DXZ9>DXZ9] fell to a 50-day low, losing .48 to 98.85. The yen [JYZ9>JYZ9] moved unconvincingly lower, despite the media placing a lot of attention on the need for the bank of Japan to inflate the yen by adding reserves to the monetary system. The December contract fell .0017 to .9532. Swiss francs [SFZ9>SFZ9] gained .0051 to .6650.
Energy contracts ended lower today: November crude [CLX9>CLX9] fell .28 to 24.33, unleaded gas [HUX9>HUX9] dropped .0035 to .6895 and natural gas [NGX9>NGX9] dipped .076 to 2.855.
Grain contracts moved up for a second day. December wheat [WZ9>WZ9] led the advance with a gain of 6 to 285 3/4. November soybeans [SX9>SX9] rallied 5 1/2 to 490 1/4 and soymeal [SMZ9>SMZ9] rose by 1.7 to 149.3.
February pork bellies [PBG0>PBG0] made the biggest move in the meats, falling 1.850 to 63.575.
December cocoa [CCZ9>CCZ9] rallied 20 to 1052 but was up by 45 at one point. March sugar [SBH0>SBH0] also moved higher, gaining .12 to 6.83.