I have a new video for UncommonWisdomDaily today called “A Big Picture Look at Commodities“. To expand on what I say in the video, here is a chart of the U.S. dollar …
I think we’re in a “wait-and-see” mode in the markets, as gold, the dollar and oil wrestle it out with the economic fundamentals. Other people are more bullish on gold. Steve Leuthold, whose Leuthold Core Investment Fund has beaten 95 percent of its rivals in the past five years, told Bloomberg News that he may boost his position in gold fivefold in a bet the dollar will decline.
Here is some news I’m reading …
Gold lacking fundamental impetus to drive it through $1,000 - for now
Although the medium and long-term trend in gold remains very positive, when the latest employment reports were released gold was trading at a key resistance level of $965. This may set up a short-term sell in gold which may bring the price back down to $940 level. However, the long-term fundamentals still remain extremely bullish.
Forget the monsoon, gold imports set to bounce
Looking more closely at the better-aligned indicators suggests in fact that imports should rally: the change in gold prices, which for the moment are higher than a year ago, but stable in the past few months; and rural GDP, projected higher but which could be supported by strong prices and government support plans in case poor rains damage the harvest badly.
Even a rally in prices may actually turn out to draw more people to buy fearing further rises: data show that when prices jumped sharply year on year — in 2002, 2004, 2006 and 2008 — the busy season imports also jumped on year, possibly because people rush to buy on the dips.
Here is a story of interest for subscribers to my recent gold report …
Gold sales help put Jaguar back in profit
Jaguar Mining Inc said on Monday it swung to a second-quarter profit, helped by a sharp jump in gold sales and foreign exchange-related gains.
Here is a story of interest to my Red-Hot Global Small Caps subscribers …
Farmers force Sino Gold to stop its White Mountain operation
Chinese farmers have forced Australian-listed Sino Gold Mining Ltd to halt operations at its White Mountain mine in northeast China in a dispute over alleged water contamination.
Sino Gold said on Tuesday that about 20 farmers had blocked road access to the underground mine in Jilin province, and were demanding compensation which the company felt was unjustified.
XX Sean’s note - since the stock was up 3 percent on the day, investors aren’t too worried about this, but it bears watching.
World top gold ETF holding falls almost 4 tonnes
The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust GLD, said its holdings stood at 1,068.90 tonnes as of Aug 7, down 3.97 tonnes or 0.4 percent from the previous business day.
Gold miners reporting lower costs
The gold miners, — Gold Fields, Iamgold Corp, Alamos Gold, and New Gold Inc — provided mixed outlook on gold production and anticipated production costs … Iamgold and Alamos were more optimistic and forecast an increase in near-term gold output, along with a decline in production costs.
Is the US ‘Cash for Clunkers’ Program Salvaging Metals Prices?
Since the U.S. car scrappage scheme started last month, the spot price for aluminum is up 11%. palladium has increased 5% and platinum’s up 6%.
Oil Rises for First Time in Four Days After Record Chinese Imports in July Crude oil rose for the first time in four days after a report showed China imported record amounts of the fuel last month, bolstering hopes for an economic rebound.
Mexico gov’t doubts mount on Chicontepec oil project
The multibillion-dollar megaproject that Mexico hopes will turn around its slumping oil industry is being questioned by some officials as results fall short, according to a source familiar with the issue. Chicontepec was producing only 30,800 barrels per day in June, a modest rise from December. After years of missed targets and with $3.4 billion already sunk into the project by the end of last year, grumbling about its cost is growing.
Soybean Imports by China Slump From Record in July, May Extend Decline China’s soybean imports fell from a record in July after a surge in inbound shipments this year outstripped demand in the world’s largest buyer of the oilseed.
Related Posts
- Sean’s Latest Video Transcript (05/05/09)
- Video Transcript — Is India Going to Abandon the Dollar? (07/07/09)
- Red-Hot Chart Action — Sino Gold (02/18/09)
- Monday Chart Fiesta — US Dollar, Euro, Gold Versus Others (06/01/09)
- Video transcript: Croak of Doom for the Dollar is Bullish for Oil and Gold (05/12/09)
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