Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Monday, October 15, 2007

Rock, Lock and Load for Monday

Check out my Sunday post for interesting pieces on the housing bubble and potential surge in Treasury Debt sales. In other news ...

Copper Leads Advances on London Exchange as Dollar Weakens; Nickel Gains Copper snapped two days of declines, leading gains on the London Metal Exchange, with dollar weakness against the euro attracting buyers using other currencies. Nickel and lead also rose.

Gold Rises to a 27-Year High in London Trading, Platinum Jumps to a Record Precious metals extended gains, with platinum climbing to a record and gold rising to the highest since 1980 as a decline in the dollar spurred demand for alternative investments.

Keep your eye on the action in the US dollar, it could be the key to everything. The euro surged through overhead resistance against the US dollar today. While it looks like the Fed is not going to cut interest rates again, signs are that the ECB Central Bank may raise rates sooner rather than later, despite the record high exchange rate of the EURUSD.
Why? Because inflation is heating up in euro-land, and unlike our central bank, the ECB takes inflation seriously. Also, their economy is firing on all cylinders, with internal demand more than making up for falling exports (exports are falling because the euro is already so high). So, the ECB probably figures that the euro economy can absorb the hit of another rate hike.

More Charts of Interest ...

Overnight, there was bullish action in Paladin on the Australian Stock Exchange overnight. Paladin and Uranium One have been lagging the rebound in some other uranium stocks. I think Uranium one has the potential for a surge to its recent downtrend.

Check out my new gold and energy blog at