Market Updates
Gold Slumps
Ivaylo
19 May, 2006
Metals
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Investors normally turn to safe-haven gold when the U.S. economy seems to be on the decline. Precious metals prices have the potential to go higher, but that volatility damages the market. It appears that for the time being the metal will continue being affected by the U.S. dollar rates and that the consolidation phase is not over yet.
[R]5:00AM Gold and silver declined on U.S. economic data.[/R]
June gold futures finished $11 down at $687.80 an ounce on the NYME. Silver sank to a low of $12.50 an ounce Thursday, its lowest level sinceApril 27, before closing at $12.52 an ounce, 72 cents lower from a day earlier. Platinum closed below the key $1,300-an-ounce level for the first time since Monday. July platinum finished $18.60 lower at $1,297.80 an ounce. Palladium also settled down at $372.50 an ounce, losing $10.60 on the day. Base metals and energy prices, however, advanced on Thursday. July copper contract advanced 3.95 cents to finish at $3.7110 per pound.
June crude oil finished up 76 cents at $69.45 a barrel, falling on the day as low as $67.85. June gasoline closed up 4 cents at $2.0151 a gallon, up from its intraday low of $1.95 a gallon. July Arabica coffee closed 0.75 cent up at $1.0215 a pound. Raw sugar in foreign ports futures for July closed 0.59 cent lower at 16.34 cents a pound.
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