The Lure Of Gold
Gold prices broke out of its trading range and
closed above its $300 an ounce resistance line.
Gold last rose above $300 a troy ounce on Feb. 11 as investors looked for safety
amid war in Afghanistan and accounting worries in the U.S. But prices failed to
move much higher, instead settling lower in the past several weeks.
The surge in gold prices stems primarily from near-term technical aspects,
including the unwinding of certain hedged positions by big producers. But the
turmoil of Middle East violence, as well as uncertainty about a strike against
Iraq, have conservative investors more devoted to gold’s prospects.
Gold-mining stocks also surged, bolstered by the rising prices. Anglogold
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gained 1.78 or 7.46% to close at 25.65. Barrick Gold
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to 18.78 and Newmont Mining
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28.40 up 1.79 or 7.77%.
April gold
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Exchange pushed to a high of $302.70, the highest price in three weeks before it
drifted back to $302.20 an ounce, a $5.40 or 1.82% gain on the day.
Other metals also advanced, with short-covering driving silver futures higher.
The May silver
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slipping back to $4.68, up 9.50 cents from Tuesday’s close.
May copper
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Stocks closed higher Wednesday after the
release of the new-home sales report. Volume was thin as investors stayed on
the sidelines ahead of the start of first-quarter earnings season.
The June Dow Jones Industrial Average futures
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points at 10425.000.Â
The June Standard & Poor’s 500
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1145.000 up 2.90.
The June Nasdaq 100 futures
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traded between 1430.000 and 1454.00 before closing in negative territory at
1438.000 down 9.500.
Bonds inched lower and the dollar was mixed.
Oil futures jumped at midday and held up to the end. May crude-oil
futures
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Mercantile Exchange. May Heating oil
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67.40 cents a gallon; May unleaded gasoline
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to 85.51 cents a gallon.
After yesterday’s big news about crop damage
in the Kansas planting area, Wheat reacted stronglt. Today Wheat futures
rose sharply on the Chicago Board of Trade, buoyed by speculation of low
plantings this season. Corn and soybeans also inched higher. Wheat for May
delivery
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corn
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to $4.72 a bushel.
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