Market Update 7 Jun 2013: Commodities Advance


Markets were mostly higher this week, led by the commodities. Cotton and crude oil advanced the most, while Bitcoin showed the greatest weakness.

Bitcoin dropped 12% to close at 2.5 g. Trading volume is beginning to grow again, averaging almost 100 kg per day.  Expect more volatility as volume increases.

All of the government issued currencies were higher this week, led once again by the Japanese Yen, which rose 3%. The Euro was in second place, rising 1.8%  to close at 29.5 mg. The USD was the least strong, adding 0.6% to close at 22.4 mg, leaving it a lofty 40.2% above it's half-life curve.

Bonds were mixed, with short term SHY rising 0.6% along with the dollar, while the long term TLT fell 0.3% to close at 2.54 g. TLT continues to straddle support/resistance at 2.55 g, and could break either way.

Stocks were also mixed, with US stocks about 1.5% higher while the Nikkei fell for the third consecutive week, giving up 3.7% to close at 2.93 g. The HUI Gold Bugs Index was also lower, dropping 1.3% and ending the week at 6.05 g, barely above the critical 6 g level.

Commodities were strong this week, with Cotton, up 7.6%, and Crude Oil, up 5.1%, leading the way. Platinum also advanced, rising 3.9% to end the week at 33.8 g, 8.6% above parity with gold. Coffee and copper each gained 0.5%, while silver rose 0.7% to finish at 0.507 g/oz.

Table of prices in gold for week ending 7-Jun-2013

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