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"Stocks in the Spotlight"

-Futures -
January -- 27 -- 2011 UPDATED WEEKLY

PRECIOUS METALS

GOLD (CMX) February 2012 ($US per Troy Oz.) Week Ending 1/27/2012 Closing price $1,732.20 + 68.20 on the week
SILVER (CMX) March 2012 (per 100 Troy Oz.) Week Ending 1/27/2012 Closing price $3,379.00 + 211.00 on the week
PLATINUM (NYM) April 2012 ($US per Troy Oz.) Week Ending 1/27/2012 Closing price $1,623.00 + 90.70 on the week

Old Yeller closed at $1,732.20, up +$68.20 on the week and up +$165.40 for January. Gold closed , up + $248.60 for August, off -$172.30 for September, up +$122.30 for October, off -$61.50 for November and off -$110.50 for December . The total gain for the entire year of 2011 is $145.40 for an ounce of gold.

Gold moved up for the 4th week after falling for one week after climbing for one week as worries about the European debt problems are keeping investors buying the metals. If good things happen in the eurozone it could put strength into the euro and this could weaken gold prices, but as long as the euro zone remains confused battles they continue to climb more.

Anything is possible but I feel the euro is going to have tough Road ahead and gold is still one of the most overpriced items on the planet and when the bubble breaks be somewhere else.

Looking at the charts above we can see the general trend is correcting on all the metals. Gold closed over the $1500 level for week 28, over the $1600 level for week 4 after staying under it 1 week, back over the 1700 level after staying under the for 6 weeks and under the $1800 level for 19 weeks after 4 weeks over it.

We still have to worry about the financial troubles in the eurozone and this worry will not go away soon as there is still much work to do. Currently, a downgrade from S&P on France, from triple A+ to a double A+ will make it a bit more expensive for borrowing money. The eurozone problems have the potential to cause big swings in either direction to our markets.

The metals look like they continuing the rally into force week. Up $68.20 on the week is pretty strong move. As we approach the $1800 to the ounce level we might want to start sleeping with one eye open. There could still be room for higher ground although the $1800 level may be a tough one to crack.

Possibly the best bet might be to buy stock in the mining companies as an alternative to owning the actual metal.

We need not forget just how fast the metals can fall. If the dollar were to return to gaining long term (fat chance) gold & silver will fall.

CURRENCY

British Pound (In US Dollars) Week Ending 1/27/2012 Closing price $1.5708 +0.0243 on the week (0.6366 pounds for the dollar) -0.014328
Euro (In US Dollars) Week Ending 1/27/2012 Closing price $1.3145 +0.02358 on the week (0.7608 euro for the dollar) -0.0097
Japanese Yen (In US Dollars) Week Ending 1/27/2012 Closing price $0.0129917 + 0.00002880 on the week (77.14 yen for the dollar) - 0.1709

The pound date for the second week after losing three weeks after gaining one week, while the euro gain for the second week after losing six weeks after gaining one week. The yen gain on the week after losing one week after gaining three weeks. The euro has remained over the dollar for 468 straight weeks with the support base near the 125 level (center chart above).

I feel that Europe will take much time getting their financial situation straightened out. This could mean a euro bouncing up and down, which would possibly make gold bouncing along with it. A stronger euro, a weaker metal, and vice versa. As far as the dollar, I don't expect big swings in either direction until we get a better idea of what's going to happen in Europe.

OIL - LIGHT CRUDE

LIGHT CRUDE (NYM)
March - 2012
($US per bbl.)
Week Ending 1/27/2012

Closing price
$99.56
+ $1.10
on the week

Future oil prices

Friday's close March's futures) is $99.56 a barrel, versus the week before at $98.46, three weeks ago at $101.56 and $99.83 four weeks ago. Going back to December 2008, a barrel of oil closed at $33.87, a price last seen in February/2004. The record "weekly" closing high is $146.65 a barrel on 7/11/08.

Oil prices rose by $1.10 after losing $1.12 in the previous two weeks as worry over supply inventories increased. Oil closed back over the $90 level for week 13 after staying under it for 12 weeks after closing over it for 22 straight weeks. Oil prices climbed back over the $95 support for week 5 after 1 week under it after 5 weeks over it and back under the $100 mark for the 3rd week after staying over one week.

The record high of $146.65 was set on 7/11/08. The $90 to $95 level is a strong resistance/support level.

Oil prices effect the entire world because, in one way or another, we all use oil

Crude Oil prices were at a low of $11.26 a barrel in February of 1999.

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J.R. Budke has been a stock broker since 1981, an options principle since 1982 and a branch office manager since 1987. He is currently inactive as a stockbroker as of 12/31/99. J.R. has been writing the articles and opinions for the Stocks in the Spotlight, in conjunction with the editor B.G. Santos, since 1990. The stories and stocks found on this site, or any "Stocks in the spotlight" written material, are the opinions of J.R. Budke unless other wise stated and are opinions only and are not to be construed as advice. You should not purchase any stocks solely on the opinions found on the "Stocks in the Spotlight's" web site or in any of it's written material. You should also be aware that options are not for everybody and carry a high degree of risk. You should always consult with your broker or investment advisor before purchasing any stock.

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