Metals Review - July 12, 2010

The Metals Pitguru Review
For the week of July 12^th, 2010

Precious metals slid last week as investment demand for the Gold market faded just a bit as prices at one time slid below $1,185. Gold rose to above $1,200 but is still not showing any real signs of returning to a new high. One would think that the equity markets decline and a rally in the Euro meant a rally in the Gold price but this was just the opposite. The market then made a turnaround in the S&P to 1060 and Gold followed suit a bit higher, so for right now I think it’s advisable to stay away to avoid this choppy situation. Look to buy some calls on a dip around $1,170.

Copper once again failing to really bust through the $3.05 level as it has traded down to $3.01. This market has not really had any luck trying to go higher but it has had higher lows recently so that is one positive sign to look to. This market really needs to break $3.10 to bust higher but for right now it’s range bound from $2.90 to $3.06.

By PitGuru Daniel Cronin