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London Bullion Report

2

0

Gold tracks dollar, platinum ETF holdings drop

Mon, Jun 29 2009, 07:31 GMT
by James Moore

The Bullion Desk


London, 29 June 2009 - Dollar watching lifted silver to a one-week high Friday and gold to a two-week high with the PGMs in a similar mood despite ETF Securities platinum holding declining 4.75% / 16.1Kozs. Commodities as a whole were mixed though with the GSC and CRB Index settling down 1.8% & 0.8% respectively while NYMEX crude closed down $1.07 at $69.16 and has lost further ground overnight.

The Dollar Index posted a small 0.3% decline Friday but finished the day below 80 after EUR/USD traded to a high of 1.4117. The greenback will remain in a volatile mood this week with economic data including Chicago PMI tomorrow, ADP Employment Wednesday and Non-Farm Payrolls Thursday. Equities closed the week in a mixed mood with the FTSE & Dow down 0.3% and 0.4% while the Nasdaq was up 0.5%. Both the Nikkei and HSI are trading lower this morning.

Gold traded higher across the first part of the day, posting a two-week high of $948.60 shortly after the US opening. Profit taking would be a feature the remainder of the day with gold posting a low of $936.60 shortly before settling at $940.
Despite the shortened trading week in the US gold could be in for another choppy week as month/quarter/half year-end book squaring is seen as well as reaction to the weeks economic data, although overall the metal appears comfortable in the recent $930-50 range.

Gold

Silver closed Friday at $14.10 after trading $14.05-33. The metal has opened lower this morning, dipping to $13.93 but should hold ground between the 100 & 40 DMAs ($13.63 / 14.50).

Silver

Platinum traded to a high of $1212 and closed with a modest gain of 0.4% despite ETF Securities holdings declining 4.75% or 16.1Kozs. Further resistance is expected around the 20-DMA ($1222) in the coming sessions but with wage negotiations dragging on in South Africa and approval for physical ETFs in the US pending there could be plenty up upside potential lurking in the wings.

Platinum

Palladium closed Friday up $3 at $246. A push above $248-50 would signal a retest of the $258-62 area.

Palladium


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