Massive Metal Rally

Written By Luke Burgess

Posted November 28, 2005

Today most metals hit multi-year highs in a broad metals rally.

Gold futures topped off just short of the key $500-an-ounce level while platinum prices rose above $1,000 for the first time in more than a quarter of a century.

Copper joined in on the action as well, closing at an all-time futures high atop $2 a pound.

Take a look:

The recent growing demand for gold stems not only from investment perspectives and outright jewelry purchases, but it seems that every reason imaginable for buying gold has been used over the past week or so.

But be careful. While a pop above $500 is certainly likely on buying from those late to the market, a correction is increasingly likely. Gold prices are pushing toward an overbought condition.

Meanwhile, platinum futures reached a high of $1,011 an ounce in New York, a level not seen since March 1980. The all-time high still stands at $1,189.50.

December copper, which touched a high of $2.017 a pound in New York, closed up 4.75 cents at $2.016.

Copper’s rally has been driven partly by speculation that China is being forced to buy massive quantities of the industrial metal to cover a short position taken by a rogue trader.

Whatever the reason, the brown metal has never seen such high numbers.

– Luke Burgess

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