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London Bullion Report

Gold & platinum consolidates but tone remains strong

Tue, Apr 14 2009, 07:22 GMT
by James Moore

The Bullion Desk  |  View company's profile


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London, 14 April 2009 - News of fresh stimulus plans in Japan triggered renewed buying interest in platinum yesterday, which combined with thinner market conditions pushed the metal to a 6-month high of $1246. Gold and silver also rallied yesterday with gold touching $900/oz and silver gaining 3.1%. US equities finished little changed with the Dow down 0.3% and S&P up 0.25% and the mixed mood has continued overnight. The dollar lost ground yesterday with the DXY finishing 1.3% lower after the Euro posted strong gains, settling at 1.3365. Economic data from the US today will show the Producer Price Index and Retail Sales for March and February Inventories.
Crude oil futures for May finished down $2.19 at $50.05/barrel.

Gold posted modest gains in Asia yesterday, edging up to $889 before going flat in a very thin European session. The yellow metal sparked back into life on the US opening, rallying initially to $898 before making a test of $900/oz level later in the session. Resistance proved strong however with gold drifting lower on profit taking the remainder of the day, settling at $894.40. Gold remains supported above $890 this morning although further resistance is expect at $900 and with ETF investment demand still slow further significant gains may be curtailed.

Gold Price

As with gold silver pushed strongly higher on the US opening, posting a high of $12.85 before running into profit taking. The industrial precious metal still closed with a gain of 3.1% at $12.75 and remains steady this morning. Given that momentum indicators are still pointing higher and other industrial metals are at multi-month highs we would look for silver to make an initial move towards the 20&40-day MA’s ($12.98 & $13.15) and potentially target last months high of $13.91.

Silver Price

Platinum hit a 6-month high of $1246 in Asia and NYMEX trade yesterday and closed with a gain of 4% at $1241. Profit taking has been seen in the white metal overnight but given the improved tone in the industrial sector and likely increases in investment demand the metal could look to challenge the $1263 high from last September.

Platinum Price

Palladium hit a high of $242 shortly before the close yesterday. The metal has tracked platinum slightly lower overnight but as with its sister metal the strong tone could see a test of chart resistance at $256 in the coming sessions.

Palladium Price


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