FXstreet.com

London Bullion Report

0

0

Precious metals gain as dollar dip triggers short covering

Fri, Aug 22 2008, 09:29 GMT
by James Moore

The Bullion Desk


London, 21 August 2008 - The precious complex posted solid gains yesterday with gold rising 3% and platinum up 6% as the dollar lost ground amidst rising tension between Russia and the US, while recently instigated shorts were forced to cover. The gains were not confined to the precious metals as the major commodity Indexes all closed in positive territory while crude oil regained the $120/barrel level, settling with a gain of $5.53. EUR/USD rallied from a low of 1.4730 to close on its highs at 1.4903 although the absence of economic data today could see further focus on oil movements and developments on the geo-political front.

Gold’s close above $800/oz Wednesday set the tone for yesterdays trading movements as the metal again saw strong physical demand during Asian trading hours. The metal edged above $820 in early Europe before running into resistance at $824.50 as the Euro ticked lower. The change in direction by the Eurozone currency soon after saw the return of buying interest with gold challenging $830 shortly after the US opening, and eventually reaching a peak of $839.35 before closing at $833.40. Yesterdays gains again prove gold’s role as a hedge against inflation as well as periods of economic unrest and geo-political tension. While further short covering could boost gold in the coming sessions we would look for technical resistance to emerge around $845, while a longer period of consolidation in the $800-840 would help gold establish a much stronger base, offering the physical base more time to adjust to higher prices.

Gold Price

Silver tracked gold to a high of $13.90 during US trade and closed Thursday at $13.76 with a gain of 70-cents. As with gold silver may look to extend higher in the coming sessions as further short covering emerges. Also with the metal beginning to recover we could see fresh ETF related demand from longer-term players. A close above $13.85 would suggest a move back towards $15/oz.

Silver Price

Platinum closed with a $90/oz gain yesterday as speculative buying interest returned during NYMEX trade. The white metal will now look to challenge technical resistance at $1490 (previous record high), which if cleared could open the way to challenge $1500.

Platinum Price

With sister metal platinum hogging the lime light palladium could only muster an $8 gain by the US close. Chart support is seen at $280 with resistance expected at $294/305.

Palladium Price


Archive

TheBullionDesk Limited  | Rose and Crown Walk, Saffron Walden, Essex, CB10 1JH
http://www.thebulliondesk.com/ | info@thebulliondesk.com

Legal disclaimer and risk disclosure

TheBullionDesk has taken every precaution to provide the most accurate information possible. However it is provided without warranty or claim of reliablity. PLEASE READ THIS DOCUMENT CAREFULLY BEFORE ACCESSING OR USING THE SITE. BY ACCESSING OR USING THE SITE, YOU AGREE TO BE BOUND BY THE TERMS AND CONDITIONS SET FORTH BELOW. IF YOU DO NOT WISH TO BE BOUND BY THESE TERMS AND CONDITIONS, YOU MAY NOT ACCESS OR USE THE SITE. THEBULLIONDESK MAY MODIFY THIS AGREEMENT FROM TIME TO TIME, AND SUCH MODIFICATIONS SHALL BE EFFECTIVE IMMEDIATELY UPON POSTING OF THE MODIFIED AGREEMENT ON THE SITE. YOU AGREE TO REVIEW THE AGREEMENT PERIODICALLY TO BE AWARE OF SUCH MODIFICATIONS AND YOUR CONTINUED ACCESS OR USE OF THE SITE SHALL BE DEEMED YOUR CONCLUSIVE ACCEPTANCE OF THE MODIFIED AGREEMENT. It is accepted by the site visitor on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. The information and data were obtained from sources believed to be reliable, but we do not guarantee its accuracy. YOU MAY NOT MODIFY, COPY, REPRODUCE, REPUBLISH, UPLOAD, POST, TRANSMIT, OR DISTRIBUTE, IN ANY MANNER, THE MATERIAL ON THE SITE, INCLUDING TEXT, GRAPHICS, CODE AND/OR SOFTWARE. You may print and download portions of material from the different areas of the Site solely for your own non-commercial use provided that you agree not to change or delete any copyright or proprietary notices from the materials. You agree to grant to TheBullionDesk a non-exclusive, royalty-free, worldwide, perpetual license, with the right to sub-license, to reproduce, distribute, transmit, create derivative works of, publicly display and publicly perform any materials and other information (including, without limitation, ideas contained therein for new or improved products and services) you submit to any public areas of the Site (such as bulletin boards, forums and newsgroups) or by e-mail to TheBullionDesk by all means and in any media now known or hereafter developed. You also grant to TheBullionDesk the right to use your name in connection with the submitted materials and other information as well as in connection with all advertising, marketing and promotional material related thereto. You agree that you shall have no recourse against TheBullionDesk for any alleged or actual infringement or misappropriation of any proprietary right in your communications to TheBullionDesk. YOU ASSUME TOTAL RESPONSIBILITY AND RISK FOR YOUR USE OF THE SITE AND THE INTERNET. THEBULLIONDESK PROVIDES THE SITE AND RELATED INFORMATION "AS IS" AND DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES, REPRESENTATIONS OR ENDORSEMENTS WHATSOEVER (INCLUDING WITHOUT LIMITATION WARRANTIES OF TITLE OR NONINFRINGEMENT, OR THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) WITH REGARD TO THE SERVICE, ANY MERCHANDISE INFORMATION OR SERVICE PROVIDED THROUGH THE SERVICE OR ON THE INTERNET GENERALLY, AND THEBULLIONDESK SHALL NOT BE LIABLE FOR ANY COST OR DAMAGE ARISING EITHER DIRECTLY OR INDIRECTLY FROM ANY SUCH TRANSACTION. IT IS SOLELY YOUR RESPONSIBILITY TO EVALUATE THE ACCURACY, COMPLETENESS AND USEFULNESS OF ALL OPINIONS, ADVICE, SERVICES, MERCHANDISE AND OTHER INFORMATION PROVIDED THROUGH THE SERVICE OR ON THE INTERNET GENERALLY. THEBULLIONDESK DOES NOT WARRANT THAT THE SERVICE WILL BE UNINTERRUPTED OR ERROR-FREE OR THAT DEFECTS IN THE SERVICE WILL BE CORRECTED. IN NO EVENT WILL THEBULLIONDESK BE LIABLE FOR (I) ANY INCIDENTAL, CONSEQUENTIAL, OR INDIRECT DAMAGES (INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR INFORMATION, AND THE LIKE) ARISING OUT OF THE USE OF OR INABILITY TO USE THE SERVICE, OR ANY INFORMATION, OR TRANSACTIONS PROVIDED ON THE SERVICE, OR DOWNLOADED FROM THE SERVICE, OR ANY DELAY OF SUCH INFORMATION OR SERVICE. EVEN IF THEBULLIONDESK OR ITS AUTHORIZED REPRESENTATIVES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR (II) ANY CLAIM ATTRIBUTABLE TO ERRORS, OMISSIONS, OR OTHER INACCURACIES IN THE SERVICE AND/OR MATERIALS OR INFORMATION DOWNLOADED THROUGH THE SERVICE. TheBullionDesk makes no representations whatsoever about any other web site which you may access through this one or which may link to this Site. When you access a non-TheBullionDesk Web site, please understand that it is independent from TheBullionDesk, and that TheBullionDesk has no control over the content on that Web site. In addition, a link to a TheBullionDesk Web site does not mean that TheBullionDesk endorses or accepts any responsibility for the content, or the use, of such Web site. You agree to indemnify, defend and hold harmless TheBullionDesk, its officers, directors, employees, agents, licensors, suppliers and any third party information providers to the Service from and against all losses, expenses, damages and costs, including reasonable attorneys' fees, resulting from any violation of this Agreement (including negligent or wrongful conduct) by you or any other person accessing the Service. Some of the information on this Web site may contain projections or other forward-looking statements regarding future events or the future financial performance of TheBullionDesk Limited. We wish to caution you that these statements are only predictions and that the actual events or results may differ materially. This agreement shall be construed according according to the laws of the United Kingdom.


Interested in forex trading? forex brokerage firms!


Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
Interbank FX, LLC
Contact the broker/FDM
Open a demo account
GFT
Contact the broker/FDM
Open a demo account
MIG INVESTMENTS SA
Contact the broker/FDM
Open a demo account
Saxo Bank A/S
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.