Gold, Silver, Metal Prices: Commentary – 11/23/2009

Good Day,

No sooner had the markets opened for Monday trading in Asia overnight, that the fund-driven push towards $1200 reignited with full force. The synopsis of what transpired prior to the NY opening bell this morning read as follows from our friends over at RBC: "today [we had] the familiar formula of a weaker dollar, stronger crude, momentum fund traders buying all night, caused by higher moving averages, higher open interest, higher volume, and more tensions in the Middle East moved gold up 18 to new territory." New territory-at least as far as this morning- meant a spot bullion high water mark of near $1175 a silver price just 15 cents short of $19 and further price additions in platinum (trading near $1470) and palladium (rising to $371 as of the last check).

The US dollar took its worst hit in nearly two weeks this morning, following St. Louis Fed Pres. Bullard’s recent comments that US policy makers might wish to extend the lifespan of the hitherto stimulus-laden environment. The word "March" made its way into these remarks and it was good enough for risk appetite to flare up again.  Quite a different tone was being heard from across the Atlantic this morning, however. ECB President Jean-Claude Trichet ratcheted up the verbal pressure on various eurozone governments to begin formulating plans to exit their massive fiscal stimulus packages, cautioning that "some countries risked losing credibility unless they take steps soon."

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