"Stocks in the Spotlight" GOLD (CMX) SILVER (CMX) PLATINUM (NYM) British Pound Euro Japanese Yen
-Futures -
January -- 18 -- 2008
UPDATED WEEKLY
PRECIOUS METALS
February 2008
($US per Troy Oz.)
Week Ending 1/18/2008
Closing $880.50
- $17.20
on the week
March 2008
(cents per 100 Troy Oz.)
Week Ending 1/18/2008
Closing price
$1,622.00
- $15.00
on the week
April 2008
($US per Troy Oz.)
Week Ending 1/18/2008
Closing price
$1,565.50
- $3.90
on the week
Old Yeller closed at
$880.50, off
- 17.20 on the week and up
+ 37.80 for February (weekly close). Last support level is $660
to the ounce, with resistance at the new high. The multi-year "weekly" closing high is 897.70 (1/11/08), breaking the previous high of 865.70 (1/4/08), 842.70 (12/28/07), $834.70 (11/9/07).
The U.S. dollar
has continued to set multi-year lows against other currencies with little let up in sight, showing some strength
against the metals this past week. Look for the dollar to continue lower over the near term.
The Feds continue to tell us they
are worried about inflation and recession, and the rule is, once the Feds say they are worried it really means
we are in trouble. The out of whack trade and budget deficits and a housing market showing signs of still lower
ground ahead, are strong reasons for commodities to keep climbing.
The good ole
USA is trying to do something about the nationwide housing tumble, but lowering interest rates will not be a solution.
Expect the volatility to continue, with a bias to the upside on the metals and continued weakness in the dollar.
Precious metals
are considered by many countries as safe havens when the world economy has too many problems. As the value of the
dollar is questioned many countries and investors buy precious metals.
CURRENCY
(In US Dollars)
Week Ending 1/18/2008
Closing price
$1.9529
- 0.0063
on the week
(0.5121 pounds for the dollar)
+ 0.001647
(In US Dollars)
Week Ending 1/18/2008
Closing price
$1.4616
- 0.0171
on the week
(0.6842 euro for the dollar)
+ 0.007912
(In US Dollars)
Week Ending 1/18/2008
Closing price
$0.009361
+ 0.00019648
on the week
(106.82 yen for the dollar)
- 2.29
| The pound lost for
the 3rd week after gaining 1 week after losing 4 weeks (29 weeks ago was the first time ever over $2 ), while the
euro
lost on the week after gaining 3 weeks after losing 4 weeks. The yen lost for week 2 after gaining 2 weeks after losing 4 weeks. The euro has remained
over the dollar for 266
straight weeks with the base near the 121 level, and more recently, the 131 level (center chart above). The dollar is weakening mostly because of very high U.S debt, a weak dollar, turmoil in the housing sector, the ongoing cost of the occupation of Iraq and growing concerns over the increasing signs of a recession on the way. We will need to watch near term events, interest rates and inflation, in order to get a better idea of what lies ahead, but a "best guess" is the dollar will continue in search of lower ground. |
OIL - LIGHT CRUDE
|
LIGHT CRUDE (NYM) |
|
|
Friday's close (February's futures) is $90.57 a barrel, versus the week before at $92.69, three weeks ago at $97.91 and $96.00 four weeks ago. The record "weekly" closing high is $97.29 a barrel, 11/23/07. The price for a barrel of oil broke over the $100 mark mid-week three weeks ago, but failed to close over the level.
Higher oil prices effect the entire world because,
in one way or another, we all use oil
The higher price of oil is one of the strongest single factors that could effect the world economic recovery. We need oil at a much lower level if we want to give any world economic expansion a chance. Crude Oil prices were at a multi-year low of $11.26 a barrel in February of 1999, but surged to over $38 when G.W. Bush was nominated (at the same time) and this was the actual start on the road to over a hundred dollars a barrel. Apparently other counties knew what would happen with GW and his giant oil companies running Washington D.C., and it appears, they were right on target in their foresight. With the Bush administration winning another four years, we can look forward to oil prices staying up for possibly the entire four year period. Keep in mind that the terrorist nations (Saudi Arabia)
|
|
MEMBER LIST |
|
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. |
|
| Quotes &News
| Market Comment
| Research Reports | Spotlight Futures
| |