Tuesday, March 24, 2009
Eureka Miner's Monday Report (03/23/09)
Monday morning trading opened with the news that Treasury has unveiled a new plan to suck up toxic assets from our banking system. We'll see how Tiny Tim's plan is received in the coming days but so far bank stocks are surging, the dollar is up and gold has stalled from its recent run up.
8:00 am (PDT)
General Moly (GMO) is up 5.56% at $0.95; Barrick (ABX) is down 0.75% at $33.14; Newmont (NEM) is down 0.59% at $43.93; Freeport McMoran (FCX) is up 5.74% at $41.24. FCX is a good bellwether because Freeport mines gold, copper and moly.
Copper remains hot, so far staying above $1.80, 2 bucks here we come.
Here's the action since March 5:
Gold up 3.7%
Silver up 4.8%
Dollar down 5.8%
Copper up 9.7%
Oil up 17.8%
The rise in copper and oil are important since they may signal some improvement in the global economy. Here's a plot of oil versus gold (since 1/5/09) that I call the "China Chart" since China has a voracious appetite for both when the sleeping dragon is feeling better. The yellow wiggly line shows recent price movement in both commodities. The blue line (Mr. Blue Snake) is a 20-day average. Both the yellow wiggly and the snake are on a tear.