FALLING DOLLAR PUSHES GOLD TO 15 YEAR HIGH -- MOST COMMODITIES ARE JUMPING
GOLD RISES OVER $420... The price of gold has risen $8 today and is trading over $420 for the first time in fifteen years. That's giving a big boost to gold shares today. Chart 1 shows gold moving above the highs reached during 1993 and 1996. The same chart shows that the next major resistance level (and next major upside target) are the highs hit during 1983 and 1987 near $500. Gold isn't the only commodity rising today. The CRB Index is jumping a whopping 4.67 points and is near another multi-year high. Thirteen of the seventeen commodities are rising. Percentage-wise, the biggest leaders are in the energy group. Natural gas, heating oil, and crude oil are up 9%, 5% and 3% respectively. Crude oil is rising $1.28 to 33.80 and is close to another recovery high. Energy stocks are among today's strongest stock groups. The falling dollar is a big part of today's bullish breakout in gold and continuing strength in commodity markets. Commodity strength is also boosting the Material sector which is very strong today. It's putting downward pressure, however, on bond prices and rate-sensitive stocks like the homebuilders. MORE LATER.
Chart 1
