Tuesday, November 8, 2011

[WallstCheatSheet] Metals Recap - Gold and Silver Climb, FCX Rebounds

On Wednesday, gold?(NYSE:GLD) futures for December delivery climbed $25 higher to settle at $1,641.60 per ounce, while?silver?(NYSE:SLV) futures rose 51 cents to settle at $30.52. ?After declining earlier in the week, gold and silver equities jumped on the positive price movement. ?In afternoon trading,?Barrick Gold?(NYSE:ABX) traded more than 3% higher, while?Yamana Gold?(NYSE:AUY) jumped by nearly 7%. ?Silver miners?(NYSE:SIL) also participated in the rebound. ?First Majestic Silver?(NYSE:AG) surged 9% and?Endeavour Silver?(NYSE:EXK) climbed 6% higher.

As the chart below shows, shares of?Freeport-McMoRan Copper & Gold?(NYSE:FCX) finally rebounded after falling to under $30 yesterday. ?Shares have taken a tumble since they crossed over the 50-day and 200-day moving averages.

In addition to a rebound in gold prices, Freeport-McMoRan received a boost from some upbeat economic data. According to ADP Employer Services, US companies added 91k jobs in September. ?The median forecast of economists surveyed by Bloomberg News expected an increase of only 75k. ?The ISM Non-Manufacturing Index is also maintaining expansion status by staying above 50%. ?The September ISM Non-Manufacturing number came in at 53% today.

In early August, we warned our?Premium Gold & Silver?subscribers to remain “extremely cautious” on?Freeport-McMoRan?as shares fell below our critical $53 support level. ?Our indicators pointed to more trouble for shares and subscribers who heeded our warnings saved themselves a painful fall. ?We warned investors again in September to wait to buy?Freeport-McMoRan?as shares hit $35. ?Shares would go on to ultimately fall to $29.85. If you would like to receive more professional analysis on Freeport-McMoRan and other precious metal investments,?we invite you to try our premi! um servi ce free for 14 days.

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