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June 5, 2006

USD weakness to start the week, Mon., June 5, 2006, 7:30 AM

Early trading in Asia-Pacific and Europe to start the week reflects further weakness in the USD and strength in commodities (oil, gold, metals).

In Asia-Pacific equity markets, the three exporter economies " Japan, South Korea and Taiwan " dropped -0.8 pct, -0.6 pct and -3.5 pct respectively. The BSE 30 of India dropped -2.3 pct on Monday.

At 111:28am GST (7:28am ET), the USD had lost value against the Euro, to hit a 52-week low, but gained modestly against the Yen.


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Gold continues to move higher this morning. Spot gold is up a further $3.40 (+0.53 pct) at 7:30am ET.


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The day is shaping up pretty much as I had anticipated.

7:45am update: "real1" has sent along his Global Gold Perspective XAU gold Elliott Wave Count. I am happy to see he confirms the position I took on Friday. I stepped into a falling market amidst a plethora of mail and blog advice calling for gold to fall further, etc., and I opined that gold was going to continue its long-term bull.

btw, I try not to equivocate. At 6:52am ET Friday I wrote: "Today will likely be the start of a summer rally in the precious metal stocks. So get ready." That was the opening line in my headline article "A glittering PM day ahead" -- yes, PM stands for Precious Metals for those who wrote me to ask.


Posted by Posted by Bill Cara on June 5, 2006 07:32:10 AM | Category: Cara Today in the Market

Discourse

I think that the masses are hoping that one day it stands for prime minister, lol, get yourself a party and who knows where it could lead. Your always joking about you being an old retired guy, but we really know better dont we. Have a great day, i know i will and everyone else that heeded your call.

Posted by: tgifbipo [TypeKey Profile Page] at June 5, 2006 8:56 AM [link]

That Kitco gold chart looks iffy to me. Why gold should be so obviously "looking for direction" given the $USD and oil scenarios is troubling. I see selling into rallies. Guess I'm just The Reluctant Gold Bull.

Good trading all.

Posted by: MarkM [TypeKey Profile Page] at June 5, 2006 9:52 AM [link]

The Sydney Morning Herald has an interesting piece:
http://tinyurl.com/nqeuh

Posted by: sergio [TypeKey Profile Page] at June 5, 2006 10:58 AM [link]

Bill,

You're just asking for debate by putting some Elliott Wave counts on your site. Real1's counting method is a little different then mine, but my count for Gold has us in the 5th Wave. To be more specific...iv of 3 of V

Best,

LB

Posted by: LB [TypeKey Profile Page] at June 5, 2006 1:33 PM [link]