Precious Metals

The Dow posted its second consecutive rally last night – the first time it has put two up-days together in three weeks.

Wall Street traders could be forgiven for feeling nauseous at day’s end following a session dominated by extreme volatility, culminating in a strong rally in the final twenty minutes.

Early strength on Wall Street was killed off last night as a large mortgage lender announced trouble and the Fed declared the market was on its own.

Late buying in the Australian market was reflected on Wall Street as the Dow, too, opened lower but closed higher.

The pattern has been broken as the Dow fell another 200 points on Friday despite a strong economic growth number. The Aussie continues to be slaughtered.

Goldilocks fled the scene last night as exceptionally poor housing data finally overshadowed any earnings reports and credit contagion ruled the day. Carry trade unwinding began in earnest stripping more than a cent off the Aussie.

Perseverance has delivered a quarterly in line with expectations that were hosed down a couple of weeks ago, leaving brokers to question whether the apparent value in the stock can be realised.

A spectacular result from Amazon headed the positives on Wall Street last night as growing LBO disquiet and very poor housing data reinforced credit market problems. Goldilocks was ahead on the day.

The Dow was down 227 points last night as America’s biggest mortgage lender reported a 35% fall in profit, and it wasn’t all because of subprime.

It seems the planets are beginning to align once more for those who have had their patience sorely tested – the gold bugs.