Step aside

April 11, 2016 09:18 AM


After five days of loss, the U.S. dollar finally rallied against its trading partners, with particular attention paid to the Japanese yen. Japanese officials suggested a government intervention could lead to a selling of the yen against the dollar. Our estimate of a European economic contraction exacerbated by the influx of immigrants keeps us on the side of the dollar, but caution prevails.


Crude oil closed at $39.72 per barrel on Friday, up $2.46 or 6.6%. June Brent crude on the London ICE Futures exchange was up $2.51 or 6.4% to close at $41.94 per barrel. A report by Baker Hughes indicating the number of oil rigs declined for a third straight week to 354 from 362 also a factor in the rally in crude. However, our estimate of oversupply and slack demand keeps us on the sidelines for now.

Precious metals

June gold closed at $1,243.80 per ounce on Friday up $6.30 and for the week gained 1.7%. May silver followed suit gaining 22.6c or 1.5% to close at $15.384 per ounce. For the week silver gained 2%.. Concern over global economic conditions prompted the move to precious metals. Disappointing quarterly corporate results also a factor. May copper closed at $2.0870, up 1.5c but for the week lost 3.5%. July platinum closed at $968.40 per ounce, up $13.70 and was up 1.3% for the week. June palladium closed at $538.65 per ounce, up $4.85 but for the week lost almost 4%. We remain sidelined in precious metals.

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About the Author

John has over 40 years experience at major U.S. Brokerage firms as Manager and Director of various International Divisions and is the founder of his own trading and brokerage firms. Over the years John has gained a wealth of knowledge and experience in all aspects of investments and trading. He was also a floor trader at the Commodity Exchange in New York. He formed Acuvest in 1999 and can be reached at