Hedge funds and investors firmly established themselves as precious metal bulls yesterday with all four metal posting solid gains on the first full day’s trade of 2006. The dollar in contrast went in the opposite direction; largely due to speculation the Fed was nearing the end of its interest rate increase programme.
The Euro closed the day up 1.4% at 1.2012 while the Yen gained a similar amount to finish at 116.17. Both have made further headway overnight with the Euro touching 1.2075 and Yen reaching 115.60. Economic data from the US today sees the release of November Factory Orders which are expected to post a small increase to 2.3%. Oil was also on the rampage yesterday through a combination of fund buying and supply concerns following the gas dispute between Russia and Ukraine. NYMEX crude for February closed at $63.14/bbl.
