The Weekly Dig
Mick Carew, mcarew@haywood.com; The Mining Team
Gold Approaches $1,200 on the Back of Yellen Comments
Highlights:
§ This week, the price of gold fell further, breaking through the $1,210 mark briefly before stabilizing at $1,217 per ounce at close. While not specifically mentioning a June rise, she did say it would probably be appropriate for the Federal Reserve to gradually raise rates in the coming months. But she urged caution and warned of hiking rates too steeply. As a consequence the dollar moved higher coinciding with the drop in the price of gold. According to Yellen, Yellen: “The economy is continuing to improve, we saw weak growth in first quarter of year. It looks to be picking up from data we monitor... We will monitor incoming data and risks. It’s appropriate for the Fed to gradually and cautiously increase our overnight interest rate over time. In coming months such a move would be appropriate.” The other precious metals, silver (↓2%), platinum (↓5%) and palladium (↓4%) were also down, finishing at $16.25, $976 and $538 respectively. In contrast, base metals had a positive week for the most part; copper (↑3%) rose to finish at $2.11 per pound, while lead (↑1.6%) and zinc (↑2%) also gained ground, finishing at $0.77 and $0.86 per pound respectively. Nickel was the laggard, finishing slightly lower (↓1%) and finishing at $3.80 per pound. It was a good week for oil, which broke through the $50 per barrel level this week before finishing at $49.33 per barrel. Finally, the UxC Weekly Spot Price of uranium fell during the week, down 4% to finish at $27.25 per pound.
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Quelle: stockcharts.com
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