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Friday, March 07, 2008

Charts and News, TGIF Edition

Here's a great chart from the Chart of the Day, showing how the US dollar and gold are both in strong (and opposite) trends. The US dollar is testing support and gold is testing overhead resistance.Here's an interesting factoid: There is 147 metric tonnes of gold in Fort Knox. Meanwhile, the StreetTRACKS Gold Shares (GLD), the largest exchange-traded fund that holds physical gold, has 647.56 metric tonnes in its vaults. So GLD has 4.4 times as much gold as Fort Knox. Wow! But then, GLD has more gold than many central banks of the world, including the European Central Bank and China.

One more thing -- we just saw oil catch up to its inflation-adjusted high. For gold to do the same thing, it would have to hit $2,200 an ounce.

Now, here is some more news you can use ...

Calpers to Boost Commodity Investments Through 2010
The California Public Employees' Retirement System, the largest U.S. pension fund, may increase its commodities investments 16-fold to $7.2 billion through 2010 as raw materials prices surge to records.

UPDATE: So much for that rumor.
Calpers dismisses talk of commodities buying spree

Oil Futures May Surge to $130 a Barrel This Year, BlueGold's Andurand Says Crude oil may reach a record $130 a barrel this year because pension funds are investing more in commodities, said Pierre Andurand, the chief investment officer of BlueGold Capital Management LLP, a hedge fund.

China Corn Harvest May Be Smaller Than Estimated After Drought China, the world's second-largest corn producer, harvested 5.5 percent less than previously forecast because of a drought from May to July in northeastern provinces, the U.S. Foreign Agricultural Service said.

Soybeans, Corn Fall After Brazil Increases Crop Forecast; Wheat Declines Corn and soybean futures fell after Brazil forecast bigger crops and on sales by some investors after both commodities reached records this week. Wheat also declined.

Jinchuan to Spend More than $141 million to Buy Overseas Copper, Zinc Mine Jinchuan Group Co., Asia's biggest nickel producer, plans to buy a mine producing copper and zinc for more than 1 billion yuan ($141 million), Vice Chairman Yang Zhiqiang said.

Fed Raises Emergency Auctions to $100 Billion, Citing Liquidity Pressures The Federal Reserve plans to increase its loans to banks this month to offset a deepening credit crisis threatening to tip the U.S. economy into a recession.

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