Gold prices extended gains above $1,010 an ounce in Europe on Friday as the dollar index’s <.DXY> tumble to one-year lows fuelled interest in the precious metal as an alternative asset.

Its gains lifted prices of other precious metals, with silver and platinum both rallying to multi-month highs in its wake.

Spot gold rose to a high of $1,011.55 an ounce, its firmest since February 2008, and was bid at $1,009.50 an ounce at 1437 GMT against $995.50 late in New York on Thursday.

Citigroup analyst David Thurtell said the dollar was providing most support to gold. “The dollar seems like it could be heading for $1.50 against the euro. There are bound to be people seeking currency hedges, and gold’s a good one,” he said.

Nonetheless, gold’s inability to hold above the $1,000 an ounce level in previous runs higher was likely to encourage profit taking at these levels, he said, while an increase

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U.S. crude oil fell over 3 percent to below $70 a barrel on Friday as U.S. equities struggled for traction and raised fears about the economy and a recovery in energy demand.

U.S. crude for October delivery fell $2.20 to $69.74 by 1:24 p.m. EDT (1724 GMT) after rising to $72.90 in choppy trading. London Brent crude fell $2.10 to $67.76 a barrel.

“Crude put in a high for the week, but there was no follow-through and the dollar and S&P turned around and that helped pull crude back,” said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

U.S. stocks were hampered by profit taking after five days of gains and the longest winning streak since November which helped boost crude prices earlier in the week.

Analysts and traders say that current oil prices reflect attitudes in the market rather than fundamentals.

Data released Thursday by the U.S. government showed petroleum product inventories, including heating oil

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America's Car-Mart Inc. (CRMT) reported fiscal first-quarter results before the opening bell today. The company posted GAAP net income of $7.02 million, compared to $5.29 million in the year-ago period. Earnings per share came in at 60 cents, compared to 45 cents in the year-ago quarter, topping the Zacks Consensus Estimate by 46.3%. America's Car-Mart currently operates 96 automotive dealerships across 8 states in the U.S., and is one of the largest automotive retailers in the country focused exclusively on the “Buy Here/Pay Here" segment of the used car market. The company operates primarily in small cities and rural locations throughout the South Central U.S. and provides financing for most of its customers. The company recorded a 10.7% year-over-year growth in revenues to $83.8 million driven by a 8.5% rise in same-store sales coupled with the launch of new dealerships in Rogers, Arkansas, Okmulgee, Oklahoma and ...

Beirut’s “luxury” chocolate chain Patchi, recently named by brand consultancy Wolff Olins as one of the world’s five most successful new brands from emerging markets, recently hired financial advisers for a primary listing in Dubai and a secondary listing in London that will see up to 49% of the company floated. The firm generated $165m in sales last year, and ultimately plans to expand into a line of cafés that would make it “like ­Starbucks, but at a higher level,” per its executive general manager, Mazin Obeidi. Its first cafe will likely open in Lebanon sometime next year, he added.  More importantly for investors, Patchi’s IPO would be the first public offering on the Dubai Financial Market in the past 14 months, despite the emirate’s open-arms towards would-be

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National Bank of Abu Dhabi (NBAD), the country’s second-biggest bank by assets ($45 billion), will open branches in Jordan and Hong Kong before the year’s end, given the fact that there exists a strong contingent of citizens from said countries in the UAE. The Bank will also expand into Libya (one branch next year), Oman (three branches by 2010) and Egypt (twenty-two branches by 2013), according to Qamber al-Mulla, senior general manager, International Banking Division, who noted that further growth may lead the firm into the banking sectors of Morocco, Algeria, Lebanon and Turkey. The Bank beat analysts’ estimates earlier this week when it reported a 9.5% drop in second-quarter profit. Moreover, it told Bloomberg that it expects its loan book to grow to 15% in 2009 after a rise of 11.1% between June and December. That said, non-performing loans (NPL) across Gulf banks

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Sales for the pharma majors in most developed markets have flattened or are growing at a slower pace. Now, emerging markets are playing a crucial role as a market survey predicts this region would contribute 50% growth in 2009.

With this backdrop, we are happy to find GlaxoSmithKline (GSK) acquiring the branded generics business of Bristol Myers Squibb (BMY) in the countries of Lebanon, Jordan, Syria, Libya and Yemen for a cash consideration of $23.2m (£14.2m). This transaction consists of a portfolio of 13 branded pharmaceuticals with annual sales of $11.8 million in 2008.

GSK is the world’s second largest pharmaceutical company, with operations primarily based in the U.K. and the U.S. This move is seen as the company’s strategy to expand its presence in branded products in emerging markets. Emerging markets have witnessed robust demand for branded products driven by a large population and middle class prosperity.

GSK is trying

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“Words from the Wise” this week comes to you in a shortened format as I do not have access to my normal research resources while on the road in Europe (also see my post “Gone A.W.O.L. - to Slovenia and Switzerland“). Although very little commentary is provided, a full dose of excerpts from interesting news items and quotes from market commentators is included.

While investors’ hopes of an economic recovery might have got ahead of reality, the cartoonists continually reminded us of worrisome issues …

Source: Signe Wilkinson, Washington Post,  June 18, 2009.

The past week’s performance of the major asset classes is summarized by the chart below - a mixed bag so to speak.

Source: StockCharts.com

A summary of

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Israel may very well attack Iran’s nuclear facilities if the hardliner Iranian President Mahmoud Ahmadinejad is re-elected tomorrow. Israel thinks that if elected, Ahmadinejad will continue to develop nuclear weapons.  And, Israel can’t afford to wait for international efforts to bring Iran’s enrichment to an end.

Detailed military plans to bomb Iran’s nuclear infrastructure have long been on the table in Tel Aviv.

Israeli daily Ha’aretz reported that Dennis Blair, the newly-appointed head of US intelligence, said Tel Aviv will eventually declare war on Tehran as a last-ditch effort to curb Iran’s enrichment capabilities.

And, former Israeli UN ambassador Dan Gillerman revealed that Tel Aviv is preparing a military offensive against the country.

War could be avoided if the Persian people elect the moderate political leader Mir Hossein Mousavi in tomorrow’s election.

Moderate ex-premier Mir Hossein Mousavi has emerged as Ahmadinejad’s main rival.  Mousavi believes Iran’s policy regarding its nuclear program is for peaceful purposes.  

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Openwave Systems Inc., a leading developer of mobile and broadband software innovations, recently announced that the company will showcase its latest mobile Internet and messaging software applications and infrastructure at Arabcom Summit 2009 in Beirut, Lebanon on May 28 - 29, 2009. Openwave’s product marketing strategist, Michael Rodgers, will deliver a presentation on the topic “Mobile Data 2.0: Next Gen Services for Network Operators in Emerging Markets” at the summit.

As the Internet merges with the communications industry, Openwave software enables service providers to converge services to effectively increase the value of their networks by accelerating time to market and reducing the cost associated with new service deployment. Live product demonstrations will be available at the Openwave exhibit booth #23, and include mobile analytics, content adaptation, mobile and broadband advertising, and a suite of messaging solutions.

Ken Denman, Chief Operating Officer of Openwave, stated, “Openwave is committed to serving emerging markets

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TODAY: Russia condemns North Korea 'Hiroshima' size bomb test; Lavrov says election result in Lebanon must be respected; Medvedev believes influence in CIS states should be extended; streamlining the military provokes discontentA spokesman for President Medvedev has said that 'North Korea's underground nuclear test in the region adjacent to the territory of the Russian Federation ... causes deep regret and the most serious concern'.  The detonation was, according to Russian experts, of a bomb roughly the same size as that dropped on Nagasaki or Hiroshima.  Russia's Foreign Minister Sergei Lavrov has said that the international community must recognize the results of Lebanon's upcoming general election, regardless of who wins.  This comment comes hot on the heels of those by US Vice President ...