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London Bullion Report

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Platinum/silver recover losses as gold tests higher

Fri, Nov 21 2008, 08:25 GMT
by James Moore

The Bullion Desk


London, 21 November 2008 - Gold finished some 1.6% higher Thursday as the metal benefited from the return of safe-haven investment demand, however equity routs globally weighed on the more industrial metals with silver and platinum dipping to their lowest since the end of October while copper lost almost 3%. Rebounds have been seen this morning though as Asian equities bounced with the Nikkei currently up 2.7%. The dollar meanwhile posted a flat day with EUR/USD trading 1.2471-2592 while the Dollar Index stalled at the 88 level, closing little changed at 88.02. Crude oil prices tumbled yesterday after failing to hold above $50/barrel.
NYMEX futures finished $4 lower at $49.62 although have regained the $50 level this morning.

Trading conditions remained choppy yesterday with gold trading initially between $735-45 before making a late push to $753 towards the close. The yellow metal settled at $750.40 and has edged up to $755 this morning as investors continue to diversify their portfolios, but the test now is whether gold has the momentum to clear $765, or will the metal stall again potentially triggering a deeper correction.

Gold

Silver ran into heavy pressure is US trade yesterday, dipping to its lowest since October 31st after breaking below $9. The metal touched $8.82 but recovered to $9.13 by the close and has edged up to $9.28 this morning. As we suggested yesterday silver was at risk of tests lower but the metal has found good support below $9 and with momentum indicators turning higher we would look for the metal to move back up towards $10.40.

Silver

Platinum dipped to $779 yesterday and touched a 3-week low of $766 in Asia this morning. The metal has since rebounded back to $815 and should find further bargain hunter interest while chart support is pegged at $784/765 with resistance above at $834/856.

Platinum

Palladium has been consolidating this morning after closing $10 lower yesterday at $178.

Palladium


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