Gold
Gold is trading at $933.50 and remains subdued overall. Near term
resistance and support are currently $944 and $913 respectively.
Direction may be poised to come from EUR/USD moves and the EUR/USD is
maintaining equilibrium despite a positive world economic outlook from
the OECD. This positive news is paired against continuing geo-political
risk and negative USD comments overnight from a senior Chinese
official. The Head of the Economics Department of the ruling Communist
Party research office said that “The US is printing dollars on a
massive scale, and in view of that trend, according to the laws of
economics, there is no doubt that the dollar will fall. So gold should
be a better choice”. Reuters reported his comments "If the yuan should
go international or become a reserve currency, China needs more gold to
back that." These comments are bullish of gold's medium term prospects.
Meanwhile in Europe, in a move to resuscitate the credit markets the
ECB pumped a record €442.2bln into the Eurozone banking system in its
first ever offer of unlimited one-year funds. This is also positive for
gold in the medium term.
Silver
Silver is currently trading at $13.88 and resistance and support remain at $14.13 and $13.63.
PGMs
Platinum trading at $1,173, Palladium at $ 234.00 and Rhodium at $1,225.00.
