Maple Leaf Steve
09-21-2005, 02:43 PM
Gold prices rise as oil continues rally
By Myra P. Saefong, MarketWatch
Last Update: 12:56 PM ET Sept. 21, 2005
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NEW YORK (MarketWatch) -- Gold futures climbed above $473 an ounce Wednesday, poised to close at their highest level since late 1987 as crude oil rising above $68 a barrel fed fresh concerns about inflation.
Crude futures jumped to a high of $68.10 a barrel in New York. The benchmark contract thus moved within hailing distance of its all-time high of $70.85 reached Aug. 30. See Futures Movers.
Against this backdrop, gold for December delivery climbed as high as $473.60 an ounce on the New York Mercantile Exchange. It was last at $472.60, up $2.60.
"While gold can consolidate and even test past heavy resistance in the $450 area, the surprises have been, and should continue to be, to the upside," said Peter Grandich, editor of the Grandich Letter.
Gold is "holding up after the Federal Reserve's rate increase," said Ned Schmidt, editor of the Value View Gold Report.
The latest U.S. rate increase should have been the catalyst for a move lower in the precious metal, but global purchases of gold have been sufficiently strong to cancel out the Fed, he said.
The "rate increase on top of hurricane damage means that a recession is increasingly on the horizon," Schmidt said, adding such a combination is "bad news for dollar and deficits."
From here, prices will likely "see some backing and filling but overall, these markets remain healthy," said Dale Doelling, chief market technician at Trends In Commodities. "If the recent dollar rally stalls and turns south this would certainly underpin the precious metals markets," he said.
Other metals futures in New York were trading higher, with the exception of palladium, the December contract for which fell 55 cents to $202 an ounce.
December silver was up 4.5 cents at $7.42 an ounce. October platinum traded at $935 an ounce, up $1.20, and December copper added 3.8 cents to trade at $1.704 a pound.
On the equities side, two key metals-mining indexes mirrored the strength in gold.
The CBOE Gold Index (GOX: news, chart, profile) climbed to 100.02, up 2.6%, and the Philadelphia Gold/Silver Index (XAU: news, chart, profile) rose 2.5% to 110.38.
By Myra P. Saefong, MarketWatch
Last Update: 12:56 PM ET Sept. 21, 2005
E-mail it | Print | Discuss | Alert | Reprint |
NEW YORK (MarketWatch) -- Gold futures climbed above $473 an ounce Wednesday, poised to close at their highest level since late 1987 as crude oil rising above $68 a barrel fed fresh concerns about inflation.
Crude futures jumped to a high of $68.10 a barrel in New York. The benchmark contract thus moved within hailing distance of its all-time high of $70.85 reached Aug. 30. See Futures Movers.
Against this backdrop, gold for December delivery climbed as high as $473.60 an ounce on the New York Mercantile Exchange. It was last at $472.60, up $2.60.
"While gold can consolidate and even test past heavy resistance in the $450 area, the surprises have been, and should continue to be, to the upside," said Peter Grandich, editor of the Grandich Letter.
Gold is "holding up after the Federal Reserve's rate increase," said Ned Schmidt, editor of the Value View Gold Report.
The latest U.S. rate increase should have been the catalyst for a move lower in the precious metal, but global purchases of gold have been sufficiently strong to cancel out the Fed, he said.
The "rate increase on top of hurricane damage means that a recession is increasingly on the horizon," Schmidt said, adding such a combination is "bad news for dollar and deficits."
From here, prices will likely "see some backing and filling but overall, these markets remain healthy," said Dale Doelling, chief market technician at Trends In Commodities. "If the recent dollar rally stalls and turns south this would certainly underpin the precious metals markets," he said.
Other metals futures in New York were trading higher, with the exception of palladium, the December contract for which fell 55 cents to $202 an ounce.
December silver was up 4.5 cents at $7.42 an ounce. October platinum traded at $935 an ounce, up $1.20, and December copper added 3.8 cents to trade at $1.704 a pound.
On the equities side, two key metals-mining indexes mirrored the strength in gold.
The CBOE Gold Index (GOX: news, chart, profile) climbed to 100.02, up 2.6%, and the Philadelphia Gold/Silver Index (XAU: news, chart, profile) rose 2.5% to 110.38.