Gold
The dollar fell sharply against most currencies yesterday and gold was
strong in all currencies and held above $1,015/oz for most of the day.
Both the London AM and PM fixes were higher from the day both in euro
and pound terms (21-Sep-09 AM $999.25,£618.233, €681.756, PM
$997.00,£616.307, €680.871 and 22-Sep-09 AM $1015.75,£622.396, €686.550
PM $1,014.00,£620.639, €686.109 - http://www.lbma.org.uk/?area=stats&page=gold/2009dailygold). Thus, while the pound and dollar have fallen against the euro, they have fallen by even more against gold.
The recent London fixes at comfortably over $1,000/oz,£600/oz and
€680/oz show that physical demand remains significant. Gold needs to
show more stamina and will need to move up to, and hold above, its
recent high of $1,023/oz in order to herald a move to new record highs.
If it does not, a correction could be expected, albeit likely short
term before a fresh assault on new highs. With so many analysts and
investors expecting a sell off, the market is liable to do the opposite
of what is expected by the majority. With investment demand remaining
robust, any sell off is likely to again be 
short and shallow. Our own,
and other bullion brokers' experience in recent days, is that
investors, particularly smaller ones, are taking profits and there are
more sellers than buyers at these levels. Unfortunately, retail
investors tend to be on the wrong side of the market. Rather than
waiting for perfect entry points, astute investors will cost average in
to positions and gradually assume a position over a period of weeks.
Silver
Silver is trading at $17.18/oz and is trading as a stubborn mule
refusing to go down. The silver market smells different and a short
squeeze and spike to over $20/oz before year end remains possible -
especially as the big picture supply/demand fundamentals remain
compelling. The record high of $50/oz remains a viable price target in
the coming years. As ever the analysts remain overwhelmingly bearish on
silver and silver remains a true contrarian's dream with little or no
public involvement and negative or no media coverage.
Platinum group metals
Platinum is trading at $1,331/oz. Palladium holdings surged overnight
pushing the metal through $300/oz and it is currently trading at
$302/oz. Rhodium is at $1,575/$1,675/oz.
