Gold
Gold is currently trading at $954/oz after finishing higher last week
which was important technically. Gold is looking to close the month of
August with a monthly higher close (July 31st close $953.75/oz) but the
shorts will as ever be attempting to paint the tape. Expectations for
gold to break above resistance at $1,000/oz in the coming months are
growing and any dips are expected to be bought. Overnight, the equity
markets closed down with the Shanghai market leading the way with a
6.7% plunge. The Nikkei took little comfort from the sweeping success
of the Democratic Party over the lengthy rule of the LDP and closed
down 0.4%. This is a big week in terms of economic releases and
Friday's nonfarm payrolls will be watched closely to see if the green
shoots are being affected by an autumnal chill.
Silver
Silver rallied sharply to close the week over 4% higher and its higher
weekly close (like gold) is important technically. Silver closed at
$13.89/oz on July 31st and is thus up sharply for the month of August
and the higher monthly close sets us up for a strong autumnal period.
It is currently trading at $14.64/oz.
Platinum Group Metals
The strike at the Impala Platinum Plant in South Africa, the country's
second largest producer, is entering its second week after mineworkers
rejected a pay offer. The threat of other plants joining the strike is
increasing with every hour. The strikers cause is not being helped by
the state of the car manufacturing industry where capacity is predicted
to fall due to the current economic environment. Platinum is currently
trading at $1,248/oz while rhodium and palladium are trading at
$1,650/oz and $291/oz. Palladium reached a 2009 high on Friday.
