Gold Glitters But Can’t Shine

  • June 14, 2000
  • Marc Dupee

Gold attempted a retest of Tuesday’s spurt to a two-month
high, but was unable to take out yesterday’s resistance in slow trade. Most of
the action was short covering and not new buyers. Still, gold managed to near
its session top, climbing 2.1%, or 6.1 to 294.2. Gold has shown signs of possible upside inertia
recently, with August registering on the Momentum-5 List from June 5 to 8. 


More Midwest wet continued pressuring deferred soybeans in grains trading but
nearby soybeans
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PowerRating) came back from an 11-cent loss to end down just a
fraction at 510 3/4. Soybean oil
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while soymeal
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to 174.4. Rains, and forecasts for more later in the week, pressured other
grains: July wheat
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4 1/4 to 203 1/4. Hints of this morning’s early downside potential in the grains
came from the Pre-Opening
Outlook and from the Implosion-5 List. The
Pre-Opening
Calls also provided downside guidance, suggesting beans could open down 4 and corn down
2. 

The bottom was pulled out from underneath pork
bellies
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PowerRating).
An unexpected movement of supply into CME warehouses pressured the contract,
sending the July contract to its lowest level since February, down 1.350 at
84.375. The move down represents a significant break of multi-month support as
well as the break of a head-and-shoulders pattern.
August lean hogs
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Leading the Momentum-5
List, sugar
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highs, leaving a Doji star, a candlestick pattern that some traders view as a
sign of a change in trend. Sugar .10 gain and close at 8.82 tallies to a 71%
rally since the April low.

Coffee
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PowerRating), a contract that has been consistently
registering its downside bias by registering three down arrows on the
Futures
Trend Matrix, closed near its contract low, down .95 at 89.85.