Gold Soars, Oil Tumbles
December 3rd, 2009 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10452.68 | -18.9 | -0.2% |
| NASDAQ | 2185.03 | 9.22 | 0.4% |
| S P 500 | 1109.24 | 0.38 | 0.0% |
| FTSE 100 | 5327.39 | 15.22 | 0.3% |
| Nikkei 225 | 9608.94 | 36.74 | 0.4% |
| ASX 200 | 4,762 | 43.4 | 0.9% |
| COMEX Gold - Dec 09 | 1212 | 12.9 | 1.1% |
| COMEX Silver - Sep 09 | 19.295 | 0.115 | 0.6% |
| COMEX Copper - Sep 09 | 323.2 | 2.85 | 0.9% |
| WTI Spot | 76.68 | -1.69 | -2.2% |
| AUD-USD | 0.925 | 0.0001 | 0.0% |
| Aluminium | 2044 | 37 | 1.8% |
| Copper | 6990 | 175.5 | 2.6% |
| Lead | 2343 | 53 | 2.3% |
| Nickel | 16265 | 235 | 1.5% |
| Tin | 14960 | 160 | 1.1% |
| Zinc | 2303 | 76.5 | 3.4% |
Gold prices closed at a fresh record high above a $1,200 an ounce Wednesday, the first time it has settled above the milestone, as investors continued to build on the momentum of the precious metal. Investors are continuing to move toward gold as a hedge against other possible adverse events. Crude oil and gasoline tumbled after a government report showed that inventories climbed last week as consumption declined. Supplies of crude oil rose 2.09 million barrels to 339.9 million, the highest level since August, the Energy Department said today. Gasoline supplies surged 4 million barrels to 214.1 million. Fuel demand slipped 2.6 percent as refineries reduced operating rates for the fourth time in five weeks. Prices should be much lower given how high inventories are, said Chip Hodge, who oversees a $9 billion natural- resource bond portfolio as senior managing director at MFC Global Investment Management in Boston.
Consumer spending rose in a majority of Federal Reserve districts. Eight regions indicated some pickup in activity or improvement in conditions, while the other four said conditions were little changed or mixed, the Fed said today in its Beige Book business survey, published two weeks before officials meet to set monetary policy. The labor and commercial real estate markets remained “weak,” the report said. Policy makers last month repeated their pledge to keep interest rates low for an “extended period” to bring down unemployment that’s forecast to remain above 10 percent even as the economy emerges from recession. A government report Dec. 4 is likely to show that companies reduced payrolls for a 23rd straight month, according to a Bloomberg survey of economists.
Our market may strengthen today on the back of gold prices and possibly from the release of retail sales data for October. The Australian index seems to have consolidated around 4770 and could test 4800 by the end of the week and is well supported at 4750.
To company news: Caltex Australia has had its $300 million acquisition of ExxonMobil's Australian petrol stations rejected by The Australian Competition and Consumer Commission.
Sino Gold Mining shareholders voted to allow Canada's Eldorado Gold Corporation to take over the company. Sino Gold chairman Jim Askew said 99.81 per cent of votes were in favour of the merger proposal.
Murchison Metals shares jumped today and traded at triple their average volume on speculation of an announcement about a big increase in the resource at its co-owned Jack Hills iron ore project.
Macarthur Coal Limited said today that coal sales have recovered from the global economic downturn. Traditional customers resumed normal buying volumes in the September quarter and are seeking additional coal. The company also said it is evaluating projects to fill its increasing infrastructure capacity so it can double production in the next 5 years.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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