General Comments

key reversal down day on Thursday, followed by a wide range bar down day on Friday for the US Dollar sent the Dollar Index tumbling from a peak of 73.37 on Thursday’s high to a reading of 72.38 at Friday’s close, with the Swiss Franc and Euro leading the advance. For precious metals, weak economic data including surging unemployment was bullish grist for the mill, helping the metals complex end the week on a strong note and reversing some of the prior weeks losses. For Gold, the week produced a gain of $15.45 to end at $901.35, up 1.74% from last weeks close of $885.90, and reversing about 40% of the prior weeks $38.30 decline. For Platinum, prices surged by $67 dollars per ounce on the week for a gain of 3.34%, with prices closing at $2070.00, up from $2003.00 the prior week. During the prior week, Platinum declined by 7.26% or $157 dollars per ounce, so this week’s recovery rally retraced 42.6% of the prior weeks down move. Silver also gained ground during the week just past, advancing from a close of $16.84 last Friday to a close of $17.48 this Friday and ending with a gain of $.64/zo or 3.80%. For Silver, this weeks gain retraced 48.85% of last weeks 7% decline.
With the Dollar very weak and precious metals very strong, it was no surprise to see mining stocks in recovery mode. For the XAU Gold Stock Index, the week generated a gain of 2.26 index points or 1.24%, with the index ending at 183.70, up from 181.44. For the XAU, strong gains on Thursday and Friday erased earlier pronounced intra-week losses, with the XAU gaining 5.26% from the Thursday low of 174.52, to the Friday close of 183.70, an advance of 9.18 index points in just two days. Other mining stock barometers also finished with gains, with the GDX ETF advancing by 1.45% on the week, with the HUI Amex Gold Bugs Index advancing by 2.31%. For the Small Cap Miners, which usually lag the action in the large caps by a day or two, the turn in large cap stocks provided only a modest boost to the weekly result. In the case of the FSO Junior Mining Index, the index managed to finish the week with a gain, ending higher by 1.41 index points at a close of 235.41, up .6% from last weeks close of 234.00. For the FSO Junior Mining Index, the 50 day average ended at 234.16, with the 200 day average ending at 267.71.