UPDATE 4-Gold hits 28-year high, platinum peaks

The euro was up a third of one percent on the day at $1.4225 — closing in on record peaks hit recently at $1.4281.
Firm crude prices highlighted gold’s role as a hedge against oil-led inflation.

Both oil and gold were also supported by rising tension between Turkey and Iraq, with Turkey’s parliament expected to debate a request for autorisation for an incursion into northern Iraq to deal with separatist Kurdish Militants.

U.S. light, sweet crude for November delivery hit a record high of $85.30 per barrel. It was last trading up $1.16 at 84.86 [ID:nSP229995].

PLATINUM FLIES

Spot platinum hit a record $1,428 per ounce on Monday, having also been set or “fixed” in London at $1,426. It was last at $1,421.00/1,425.00, up sharply from $1,415.00/1,419.00 in late New York on Friday.

Speculative buying linked to worries over supply in key producer South Africa have pushed up prices and leasing, or lending, rates on the metal, with speculation that the market is set to turn in a deficit this year.

“Platinum continues to hold the most bullish forecast of the precious complex as already tight fundamentals could be made tighter still should South African mine workers strike,” said analyst James Moore of TheBullionDesk.com.

South Africa’s biggest mining union said on Friday it was preparing a strike notice which it hoped to submit to authorities this week to apply for a one-day protest against deaths and accidents at mines.

A national strike over safety, pending government approval, would be a first for the union. [ID:nL12134190]

“There is just not a glut of metal out there and that is supporting prices along with a weaker dollar. Prices above $1,400 I think are sustainable,” Calyon analyst Michael Widmer said.

In other bullion markets, the most active December COMEX gold futures contract jumped $7.9 to $761.7 an ounce, closing in on the contract high of $800

Benchmark August TOCOM gold futures ended at 2,882 yen a gram, up 42 yen or 1.5 percent from the previous close.

The contract earlier rose as high as 2,883 yen, the highest for any benchmark since Oct. 1984.

Palladium rose slightly to $378.00/382.00 an ounce, compared to $377.00/381.00 in New York on Friday, while silver hit its highest since the end of April at $14.00 . It was last at $13.89/13.94 an ounce up from $13.76/13.81. (Additional reporting by By Risa Maeda in Tokyo)

Earnings Will Be Focus on Wall Street

The third-quarter earnings begins in earnest this week, with investors hoping to learn how bad the damage was from the summer’s credit crunch, and how much better the coming quarters are likely to be.

The deluge of reports will include results from technology names such as Intel Corp., International Business Machines Corp. and Google Inc.; banks like Citigroup Inc., JPMorgan Chase & Co. and Bank of America Corp.; and industrial companies including Caterpillar Inc. and Honeywell.

At this point, Wall Street is anticipating a fairly weak third quarter overall, but it expects corporate growth to bounce back robustly in the fourth quarter. Any indication that companies aren’t rebounding as well as the market is hoping could derail the stock market, which has risen back into record territory.

Last week, the major stock indexes managed modest gains. The week was a bit rocky, but saw the Dow Jones industrial average and the Standard & Poor’s 500 index touch all-time highs. The Dow finished the week up 0.19 percent, the Standard & Poor’s 500 index ended up 0.27 percent and the Nasdaq composite index rose 0.91 percent.

The gains were fueled in part by the week’s economic data, which were mostly positive. On Friday, the Commerce Department said retail sales rose 0.6 percent in September from August — double the growth economists predicted — a day after some U.S. retailers reported sluggish demand in September.

“Good news on the consumer front tells us that while the economy is not out of the woods yet, a clearing is emerging,” said Bernard Baumohl, managing director at the Economic Outlook Group LLC, in a note.

“While I do expect more bad news to come out of the mortgage sector the next six months, the element of surprise is gone,” he wrote.

This week does bring some key economic gauges, which investors hope will suggest that the economy is still growing moderately and that inflation is under control.

The National Association of Home Builders releases its housing market index Tuesday. On Wednesday, the Labor Department releases its August reading on consumer prices; the Federal Reserve puts out its Beige Book on economic conditions around the country; and the Commerce Department reports on housing starts. And Thursday, the Conference Board releases its September index of leading economic indicators.

Meanwhile, Wall Street will be listening to speeches from some Fed officials during the week — including chairman Ben Bernanke, who is scheduled to speak at a St. Louis Fed conference on Friday. The markets are split on whether policy makers will lower interest rates again when they meet Oct. 30-31.

Most investors would like another rate reduction after the half-point cut made on Sept. 18. The Fed’s move helped loosen up the credit markets and restore confidence in the stock market.

But perhaps even more so, investors want to see that corporate America is still seeing profit growth despite the slowing economy.

Other major companies releasing third-quarter earnings this week include Johnson & Johnson, Yahoo Inc., Coca-Cola Co., Merrill Lynch, Advanced Micro Devices, Pfizer and McDonald’s Corp.

How Bad Credit Can Impact Your Life

The turbulent economy and tougher lending environment appears to have shut the door on credit opportunities for those with a dubious credit history.

However, in many instances, poor credit doesn’t necessarily knock you out of the credit pool. But it does mean you’ll need to be well prepared and informed when you go looking for a loan. In any case, you’re probably going to get less-desirable terms, and you’ll pay a little more than the average consumer because the lender is taking on a greater risk, thanks to your shaky financial record.

Here’s a chance to learn how lenders evaluate you and better understand a few of the tools they use to make their choices, such as your credit reports and credit scores; how to deal with lenders so you don’t get tricked into losing even more money; and how you can bypass some conventional routes to receiving credit.

Bankrate has selected seven areas where your credit history can have a big impact, explaining how bad credit can affect you and what you can do to make things better.

Some of the guidance provided, as well as the wise use of the credit you might ultimately receive, will create improvements to your history and boost your credit scores from bad to good. That means easier credit at a better price.