Gold
Gold saw further profit taking yesterday and fell to support at
$982/oz. Thereafter it staged an impressive rally and briefly broke
back through $1000/oz. Currently, it has fallen just below this level
but is constantly testing that mark and appears to be consolidating at
the $1,000/oz mark. With the dollar under significant pressure, a test
of new highs should be imminent. Gold production in South Africa, the
second largest producer in the world, dropped 7.6 percent in July and
has fallen consistently in recent months and years despite rising gold
prices. The Federal Reserve is desperately trying to create inflation
to counteract the forces of debt and asset deflation of recent months –
but they should be careful what they wish for - because large US
creditors are unlikely to tolerate a significant devaluation of the
dollar.
Silver
Silver also suffered from a bout of profit taking but not only
recovered, it pushed to a fresh six month high of $16.94/oz overnight.
It has since re-traced slightly to $16.75/oz, but the momentum for
sliver seems to be very positive.
Platinum group metals
Platinum is continuing to make progress towards $1,300/oz where it is
likely to meet resistance. It is currently trading at $1,285/oz.
Palladium is range bound between $290-$300/oz, currently at $293/oz and
rhodium is $1,600-$1700/oz.
