Crude oil price surged to as high as 68.99 before settling at 68.38, +0.5%, Monday. Except for natural gas, others in the energy complex rose with gasoline gaining +1% to 1.93 and heating adding +0.9% to 1.8. Natural gas dropped -2.5% to 3.6. The market was thrilled by the better-than-expected US new home sales data. Stocks also extended further strength.
New home sales rose to 384K in June, higher than consensus 355K and 342K in the prior month. The increase was seen in all regions except the South. In the Midwest, the rise was +43.1% while in the Northeast and the West, the gains were +29.2% and +22.6%, respectively.
US stocks rallied after the release. Dow Jones Industrial Average and S&P 500 Index extend gains by +0.17% and +0.3%, respectively, to 9108 and 982 as Investors have become more and more confident on the economic outlook.
Natural gas plunged yesterday due to mild weather in the US has lowered demand for power generation which represented 29% of gas consumption in the US. Apart from that, huge inventory and the seemingly bottomed gas rig counts also weighed on prices.
Gold price edged +0.04% higher to close 983.5 on USD's weakness. However, it remained range-bound and underperformed others in the precious metal complex.
The market's focus is in the Strategic and Economic Dialogue talk between the US and China. To address China's concerns about the security of US' financial assets, Treasury Secretary Timothy Geithner assured that the nation will be able to maintain a 'sustainable' deficit by 2013. This certainly eased investors' concerns about USD's stability and helped USD.
From July 28 to July 30, the Treasury will auction $115B in 2-year, 5-yearand 7-year Treasury notes, in addition to $90B in T-bills. If market response is good, then the pressure on USD will be eased.
Platinum price rallied +2.6% to 1222.5 Monday as Neville Nicolau, CEO of Anglo Platinum, the world's largest platinum producer, made some upbeat comments on platinum price. Nicolau forecast that platinum will continue to trade above 1200 for the rest of 2009. Price drivers are mainly increase in autocatalysts demand and surge in jewelry sales in China. The company's forecast of long-term platinum price is 1350.
During the period from January to June 2009, the company's equivalent refined platinum production rose +10% to 1.24M oz while sales soared +9% to 1.22M oz, compared with the same period last year. The company reiterated the target that annual production of refined platinum in 2.4M oz in the coming 3 years.
New home sales rose to 384K in June, higher than consensus 355K and 342K in the prior month. The increase was seen in all regions except the South. In the Midwest, the rise was +43.1% while in the Northeast and the West, the gains were +29.2% and +22.6%, respectively.
US stocks rallied after the release. Dow Jones Industrial Average and S&P 500 Index extend gains by +0.17% and +0.3%, respectively, to 9108 and 982 as Investors have become more and more confident on the economic outlook.
Natural gas plunged yesterday due to mild weather in the US has lowered demand for power generation which represented 29% of gas consumption in the US. Apart from that, huge inventory and the seemingly bottomed gas rig counts also weighed on prices.
Gold price edged +0.04% higher to close 983.5 on USD's weakness. However, it remained range-bound and underperformed others in the precious metal complex.
The market's focus is in the Strategic and Economic Dialogue talk between the US and China. To address China's concerns about the security of US' financial assets, Treasury Secretary Timothy Geithner assured that the nation will be able to maintain a 'sustainable' deficit by 2013. This certainly eased investors' concerns about USD's stability and helped USD.
From July 28 to July 30, the Treasury will auction $115B in 2-year, 5-yearand 7-year Treasury notes, in addition to $90B in T-bills. If market response is good, then the pressure on USD will be eased.
Platinum price rallied +2.6% to 1222.5 Monday as Neville Nicolau, CEO of Anglo Platinum, the world's largest platinum producer, made some upbeat comments on platinum price. Nicolau forecast that platinum will continue to trade above 1200 for the rest of 2009. Price drivers are mainly increase in autocatalysts demand and surge in jewelry sales in China. The company's forecast of long-term platinum price is 1350.
During the period from January to June 2009, the company's equivalent refined platinum production rose +10% to 1.24M oz while sales soared +9% to 1.22M oz, compared with the same period last year. The company reiterated the target that annual production of refined platinum in 2.4M oz in the coming 3 years.
...
great simple strategy...is that a holy grail?
By speculating I mean obtaining profits for your own interest without having any certainty that the price will actually reach your target. A central bank use its "profits" mainly for its currencies reserves.
