Why The Drop In Gold Is Good For The Market
Next week, there will be many economic reports
coming out that could make a difference in the markets.
August gold futures
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13-week lows today. Two reasons for the drop are less volatile equity
markets and a slightly firmer U.S. dollar. This gave way to the liquidation of
gold contracts and short-selling. Now gold has a support level around the $300.00
and further down movement could push it to the $298 an ounce level, its
200-day moving average.
September silver
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to newer lows and returned to prices that have not been seen for nine weeks at
around $4.665 a troy ounce. This is below the previous support around $4.80.
September copper
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trading sessions closing at 69.04 a pound, up .25.
Saving the best for last was the theme for the
broader index futures today. After trading in a fairly tight area, the Sept.
S&P 500 futures
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The S&Ps ended the day going into the weekend positive at 853.70 up 16.90.
The Sept. Nasdaq 100
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semiconductor sector. The Nasdaq 100 closed up 15 points at 912.
The U.S. dollar for September
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looks to be forming an island bottom which could turn out to be a positive. The dollar closed at 106.90, up 1.41 or 1.35%.
The Sept. 30 year U.S. bond
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was positive on the day, rallying to 105.90 up 1.84 or 1.77%, and the Sept.
10-year note rose .20 to close at 111.04.
Grains traded at the Chicago Board of Trade (CBOT) were mixed today as soybean
prices were lower amid uncertainty over the weather, market analysts said.
November Soybean
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to forecasts for continued rains in key crop regions, but little of
that moisture has materialized yet. The feeling is that there could be
some rains and the beans dropped 9 1/4 cents or 1.76% to $5.15 a bushel.
Wheat for September delivery
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December corn
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$2.52 3/4 a bushel, up 1/2.
In the energy markets at the New York Mercantile Exchange (NYNEX) prices of
crude oil and petroleum products futures continued
Thursday’s losses. The fact that there has been market-moving news has
kept most speculative traders on the sidelines in the last two days, leading to
smaller trading volumes. September crude oil
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$26.55 a barrel; Sept. unleaded gasoline
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77.59 cents a gallon, Sept. heating oil
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67.79 cents a gallon and Sept. natural gas fell 0.1 cents to $2.89
per million British thermal units.