Traders Selling Dollars in a Big Way

As the final trading week of July comes to a close the metals finished on a higher note. Silver went up 38 cents to $13.92. Gold tacked on $19.00 closing at $954.00. Palladium edged up $2.00 finishing the day at $262.00. Platinum gained $20.00 to $1201.00 per ounce. Trading volume was moderately heavy.

Once again our regular day to day barometers of Oil and Euro led the way. Today’s key event was a 1.76 cent surge in the Euro against our Dollar. While the Euro got some support from an additional $1.31 rise in the price of Oil, it was not the primary driving catalyst. According to sources in London, a powerful rumor started circulating throughout Europe regarding General Electric. The rumor indicated that GE’s financial arm GE Capital will announce the need for an additional $12-14 billion in bail out capital. (THIS IS A RUMOR ONLY) Even so, traders started to sell Dollars in a big way. Last on the Euro $1.4256.

Meanwhile Crude is trading at $68.25. Today’s economic data came in mixed with only the GDP worth mentioning. It clocked in with a smaller than expected decline of 1%. However;the prior quarter’s decline of 5.5% was revised lower to a 6.4% decline. Over in the stock market the Dow remained calm in the wake of the data and is apparently ignoring the GE rumor; at least so far. Last on the Dow 9180 up 26 points. When things get going next week traders will be focusing in the next Non Farm Payroll Report due out next Friday. On Monday the calendar contains a fresh look at Construction Spending, the ISM Manufacturing Index, and Auto Sales.  Have a great weekend.