Gold
Gold was under pressure for most of yesterday. However, the overly
pessimistic view of the metal lifted in the late afternoon and it
staged a good comeback, gaining $10/oz in under an hour. Two of the
most respected investment powers in the US - PIMCO bond fund and Warren
Buffet warned yesterday regarding risks posed to the dollar and this
will have supported gold. PIMCO said that the dollar's reserve currency
status was not guaranteed and Buffett warned regarding inflation and
warned that the "gusher of federal money" threatened the dollar. Gold
remains in a tight range and testing $960/oz, yet again, would be
significant in the short term. However, there is still the possibility
of a further move to the downside towards initial support of $925/oz.
Below that, $905/oz is the next support but there should be plenty of
interest at these levels with buyers looking for a basing point to
enter and profit from the next leg up in the secular bull market. Gold
is currently $944/oz.
Silver
Silver was stronger overnight and has moved back above $14.00/oz. It
may still be vulnerable and a move to $13.00/oz could happen in the
short term prior to rechallenging $15.00/oz. Silver is currently
$14.01/oz.
Platinum Group Metals
Platinum is still finding good support from the market,
particularly in light of the wage negotiations at the Impala mine are
still unsettled. It is currently trading at $1,243/oz. Palladium is
trading at $274/oz and rhodium at $1,600/oz.
