Gold Remains Below $500

Volatility was low as the holiday period drew closer.
A number of economic reports failed to stir much enthusiasm, except for the
Weekly Petroleum Status report.

In today’s economic news, the Mortgage Bankers
Association reported a drop a loan applications

3rd Quarter GDP was revised downward

and Crude Oil Inventories rose


Crude Oil and Heating Oil both closed higher
despite the 2nd week of rising inventory. However, a breakdown of the report
revealed that distillates fell much more than expected and were behind the price

Chart courtesy of

Treasuries closed lower for the 3rd consecutive day and the US Dollar rose
for the 3rd consecutive day after today’s reports. It was the first 3-day gain
for the Dollar versus the Euro in 6-weeks.

For a review of the Dollar in 2005 and a look ahead to 2006, read

Jes Black’s column
from yesterday.

Gold closed under $500 for the 2nd consecutive
day. However, the yellow metal stabilized after falling almost $50 in 8-days.

Chart courtesy of


Mortgage Bankers Association’s Weekly Market
Index Drops 4%; Purchase Index Down 5.2%, Refinancing Index Down 1.6% (report).

Q3 GDP Revised Downward To 4.1% Growth Rate (report).

EIA: Crude Oil Inventories Up 1.3 Mln. Barrels, Gasoline Inventories Down
300,000 Barrels (report).

Ashton Dorkins

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