Precious Metals

The Dow was up 38 points last night as the market had a bit of a rest.

Monday’s movement in the gold price in the US was no doubt a disappointment for gold bugs expecting more following the bail-out. But what might the bigger picture be?

While stocks around the globe jumped over 3% yesterday, the US broad market S&P 500 managed only 2% in a wild session. The bulls and bears are in a face-off.

It was inevitable. The US government last night stepped in to take over control of mortgage lenders Fannie Mae and Freddie Mac.

Wall Street recovered from an opening loss on Friday following weak jobs data and the pre-emptive Thursday rout.

FX rates and deteriorating market conditions see both Standard Chartered and Barclays Capital revise commodity prices.

There was no waiting for tonight’s US employment data. The global economy levee broke last night and the world was down 3%.

Wall Street finished flat last night as commodities recovered somewhat from earlier falls and the Dow retraced from down 100.

While stronger physical demand may be needed to lift gold prices, some argue the price risk is still currently to the upside.

The oil price fell a total of nearly US$6 over the US long weekend but the subsequent 250 point rally in the Dow turned into down 26 by day’s end.