Gold Shines, S&P at 13 Month High
November 12th, 2009 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10291.26 | 44.29 | 0.4% |
| NASDAQ | 2166.9 | 15.82 | 0.7% |
| S P 500 | 1098.51 | 5.5 | 0.5% |
| FTSE 100 | 5266.75 | 36.2 | 0.7% |
| Nikkei 225 | 9871.68 | 0.95 | 0.0% |
| ASX 200 | 4,757 | 23.5 | 0.5% |
| COMEX Gold - Dec 09 | 1114.5 | -0.1 | -0.0% |
| COMEX Silver - Sep 09 | 17.545 | 0.008 | 0.0% |
| COMEX Copper - Sep 09 | 296.7 | 0.1 | 0.0% |
| WTI Spot | 79.28 | 0.23 | 0.3% |
| AUD-USD | 0.9299 | -0.001 | -0.1% |
| Aluminium | 1918 | 22 | 1.2% |
| Copper | 6475 | -90 | -1.4% |
| Lead | 2258 | -20 | -0.9% |
| Nickel | 16850 | -580 | -3.3% |
| Tin | 14860 | -190 | -1.3% |
| Zinc | 2121.5 | -67 | -3.1% |
U.S. stocks extended a global advance, sending the Standard & Poors 500 Index to a 13-month high, as Chinas industrial production surged and Federal Reserve policy makers signaled interest rates will remain at a record low..Bank of America Corp. and Home Depot Inc. led the Dow Jones Industrial Average to its highest close since October 2008. Gold jumped to an all-time high Wednesday as the dollar depreciated, fueling demand for the metal as a hedge against the anemic greenback. December gold climbed $12.10 to settle at a record high of $1,114.60 an ounce after hitting a record trading high of $1,118.60 an ounce earlier in the session. Overall we're still seeing strong investor interest, said Carlos Sanchez, precious metals analyst at CPM Group, adding that gold's recent rally has attracted many "short-term market participants.
The dollar index, which gauges the greenback's value against a basket of currencies, was up 0.1% to 75.11. Crude oil rose as Chinese crude imports climbed in October to the second-highest level ever as increased industrial production spurred fuel demand. China’s net oil imports were almost 19 million tons, or 4.5 million barrels a day, according to the Beijing-based customs office. China’s industrial output expanded last month, signaling a strengthening recovery in the world’s second-biggest oil- consuming country after the U.S.
The Chinese numbers are obviously very supportive, said John Kilduff, partner at Round Earth Capital, a hedge fund that focuses on food and energy commodity investments, in New York. The consistently high import numbers fly in the face of those who say there is nothing fundamental about the rise in oil prices.
Data out today is unemployment for October; released at 11:30am with consensus at 5.8% (previous 5.7%). Among company events scheduled for Thursday, Westfield will give a quarterly trading update, while Lend Lease and Bluescope Steel hold their annual shareholders meetings.
Today, the Australian market is set to strengthen further on the back of strong Chinese data. Higher demand for raw materials may see resource and oil stocks gain. SPI futures finished up 21 points at 4788, trading at a premium of 31 points to the S&P/ASX 200 Index. With the market on its fifth session of gains, it shows the momentum of buying strength. We have broken resistance at 4714, with the next target level being the October high of 4880. In today’s trading, we could see the market up to 4833, with support at 4764. Attention will be on gold today, as it surges to new highs with no signs of any weakening momentum.
Gold strength coupled with renewed confidence in the Australian market should see good opportunities to enter the market.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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