Gold
Gold fell yesterday on technical driven profit taking and is currently
trading at $996.75/oz. It traded in a range overnight of $991-$999/oz.
Support is now at $990/oz and resistance is at the recent high at
$1,024/oz. All eyes are on the G20 summit in Pittsburgh and trading is
likely to be cautious prior to the meeting. The dollar fell this
morning after a draft communiqué from the G20 suggesting that interest
rates, including those in the United States, would remain low for the
foreseeable future. Tensions remain and have yet to be resolved and
China and other US creditor nations are increasingly concerned and
vocal regarding the ultra loose fiscal and monetary policies in the US
and, to a lesser extent, the UK. A senior official from China's central
bank said Thursday that stability of the weak US dollar is critical to
the global economic recovery. China's continuing call for a review of
the dollar as the world's reserve currency has led Treasury Secretary
Geithner to issue the usual assurances of the 'strong dollar' policy at
the start of the G20 summit. Growing concerns about the dollar's
continuing role as the sole global reserve currency should see gold
well supported at these levels.
Silver
Silver is currently trading at $16.25/oz.
Platinum group metals
Platinum is currently trading at $1,298/oz while palladium trades at $293/oz and rhodium at $1,650/oz.
