Gold
Very strong resistance at $966/oz proved too tough for gold yesterday
as the markets allowed doubts that the recent surge in the price could
not be sustained creep in. Gold slipped some 1% to $935/oz, not helped
by a rally in the dollar that saw gold fall slightly. Technically, the
momentum over the short term seems to indicate that the price will fall
further and strong support at $905/oz, could be significant. A myriad
of problems still plague the dollar and this rally should be short
lived and a gold price of over $1000/oz before the year-end seems
increasingly likely. Continuing risk aversion will see gold well
supported close to these levels. South African gold mine producers
agreed on pay increases of between 9-10% with mine workers yesterday,
concluding negotiations and hopefully settling recent tensions between
management and staff.
Silver
Silver was also unable to keep hold of its recent gains and dropped below $14/oz and is currently trading at $13.58/oz.
Platinum group metals
Platinum and palladium also dropped off in price yesterday but with the
end of the month approaching, demand for rhodium from refiners saw the
metal gain in price, trading at $1625/$1725/oz.
