Why Today’s Gains In Gold And Oil Don’t Mean Much
The tug of war continued today
as gold, bonds and energy finished slightly higher,
while stocks finished mixed and the dollar finished lower. Volume across most
markets was light, as the majority of investors prefer to wait for more clarity
out of Iraq before committing to anything. The moves in petroleum and gold are
very unimpressive considering last week’s losses, which suggests that the price
action is merely consolidating before moving lower.
Equities
Equities bounced off their lows and finished
mixed today. The S&P contract
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and the Dow
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finish at 8215. On the other hand, the tech heavy Nasdaq
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4.50
and closed at 1070.00.
Fixed Income
Treasuries finished up for a second straight day. The 10 year contract
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closed at 113-235, up 0-060; the 30 year
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up 0-055 to close at 112-210
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Metals
Gold was up 1.20, to finish at 330.10
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these small gains are unimpressive. Silver
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gold and was up .50% to finish at 4.398. Copper traded with the
equities–not on fundamentals–and was down 1.85 to finish at 75.25
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Energy
Oil finished off its highs after news about
possible resolution to the ethic clashes in Nigeria could mean that the 800,000
million barrels per day– that are being withheld from the market–may be
released. Oil futures were up 2.36% to close at 28.63
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gas followed suit, climbing .39% to close at 5.097
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Currencies
The US dollar was slightly down against all other
major currencies. The USD index
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finished at 101.07. Again, after making stellar gains against all
currencies last week, these pullbacks over the past two days are unimpressive.