London Bullion Report
Platinum extends rally as investment demand surges
Thu, Apr 9 2009, 07:57 GMT
by James Moore
The Bullion Desk | View company's profile
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London, 09 April 2009 - The PGM’s remain buoyant over the past 24-hours with platinum reaching a 6-month high of $1200/ozs and palladium a 5-month high of $235 as investment demand increases following the ETF Securities application to launch physical ETFs in the US.
Meanwhile gold and silver have been consolidating in narrow ranges, as have currencies with the DXY closing just 0.1% lower with EUR/USD straddling 1.32 and USD/JPY the 100 mark. The Dow finished Wednesday up 0.6% and the S&P500 up 1.1% while sentiment has been stronger overnight with the Nikkei currently up 3.7% and the Hang Seng 2.3%. NYMEX crude futures for May finished 23-cent higher but closed below $50/barrel. Economic data today will show Jobless Claims for the week of April 4th and the Trade Balance for February.
Compared with the previous few days gold was in a steadier mood, posting a $12 range between $878.50-890.50. The yellow metal has traded $880.50-84.50 this morning and is likely to hold ground in the $865-900 area for the timebeing as traders position themselves ahead of the Easter break. Again though given the lack of fresh investment interest through the SPDR ETF and steadier tone in equities we may have to see gold move lower before fresh demand is stimulated.

Silver finished Wednesday 10-cents firmer at $12.36 after trading $12.19-49. The industrial precious metal looks set to track gold trading sideways for now between the 100 & 200DMA’s ($11.97-12.53) however with momentum indicators turning higher silver may be brewing for a push back towards $13.20.

The PGM’s were again the strongest performers yesterday as investment demand pushed both metals to multi-month highs. Further gains have been seen this morning with platinum trading above $1200/oz for the first time since September 25th and palladium to $235. Both metals look set to extend higher in the coming sessions, particularly if lease rates begin to tighten and may now look to challenge chart highs from last September located at $1260 and $256.


Published on
Thu, Apr 9 2009, 07:59 GMT
Archive
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