Market Update 14 Dec 2012 – Cotton Up, Coffee Down


This week's largest price swings were in the commodities, with coffee the biggest loser, falling 3% and setting another new all-time low, and cotton the biggest winner, up 4.3% to close at 13.8 mg/lb.  Crude oil continued to rise this week, up 1.2% to 1.59 g/bbl, while silver continued its decline, dropping 0.7% to close at 0.596 g/oz.

Platinum also continues to work its way higher, rising 0.7% to close at 29.58 g/oz. This is still a 4.9% discount to gold.  Over the last 12 years, platinum's premium to gold has averaged 67%, so there is still plenty of profit potential at these levels.

Currencies all extended last week's rally, except for the Yen, which gave up most of last week's gains to close at 0.220 mg. Bitcoin once again was the strongest currency, rising 1.9% to close at 248.6 mg, approaching its 2012 high of 256.5 mg.

Short term bonds rose 0.3% in line with the USD, but the long term treasuries, represented by TLT, fell 0.4%. Last week, TLT's rally closed right at the 200 day moving average resistance level; rather than breaking out, prices fell early this week, and closed well below the 200 day average. This may signal the start of a new move down for TLT.

Equities were all higher this week, led by the gold stocks (HUI up 1.2%) and by the Nikkei (also up 1.2%). Japanese stocks continue to outperform the Yen.

Table of prices in gold for week ending 12/14/2012

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