Gold
Gold rose above the $1,020/oz barrier in late trading in Asia and rose
to new 18 months highs at $1,023.60/oz this morning. Despite most
analysts calling for a correction, there is buying at these levels and
the market appears well supported. Gold's rise is again in all major
currencies and not just in dollar and euro. Gold is again knocking on
the €700/oz mark. British pound weakness has seen sterling gold rise
from £570/oz to over £615/oz in the last month, as sterling has again
come under pressure. This contradicts the oft repeated misconception
that the falling dollar makes gold cheaper for holders of other
currencies. Gold is becoming more expensive in all major currencies, or
to put it more accurately, major currencies are being devalued and are
thus falling in value versus gold. This was alluded to by Alan
Greenspan last week when he said that investors are buying precious
metals to hedge against declines in currencies and that this was "a
monetary phenomenon," and "an indication of a very early stage of an
endeavour to move away from paper currencies." His words will have been
noted by central bankers and large money interests. While gold is
overbought in the short term and due a correction, traders may push
gold to new record highs prior to taking profits.
Silver
Silver is currently trading at $17.51/oz and has not been here since
27th July 2008. Silver's technicals and fundamentals remain even more
favourable than gold's, and as ever, silver has received little or no
media commentary in recent weeks despite its impressive performance
suggesting that silver is only in the intermediate phase of this bull
market.
Platinum group metals
Platinum is currently trading at $1,351/oz while rhodium is steady at $1,650/oz.
CORRECTION
In yesterdays GoldCore Precious Metals Update we incorrectly said that
Lehman Brothers collapsed 18 months ago. It was in fact Bear Stearns
that collapsed 18 months ago which contributed to gold reaching its
record nominal high of $1,033/oz on March 17th 2008. Lehman Brothers
collapsed 12 months ago with the anniversary this week.
