London Bullion Report
Gold flat after Friday bounce, platinum lower after strike averted
Mon, Aug 24 2009, 07:28 GMT
by James Moore
The Bullion Desk | View company's profile
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London, 24 August 2009 - Having been on a back footing for most of last week the precious metals closed Friday in better spirits as equities rallied and the dollar retreated after Fed chairman Ben Bernanke suggested the US economy was nearing the point of economic recovery. "The prospect for a return to growth in the near-term appear good", however his counterpart from the ECB was not as upbeat "I am a little bit uneasy when I see that, because we have some green shoots here and there, we are already saying, 'well, after all, we are close to back to normal’." The Dow gained 1.7% and the S&P500 1.86% while the DXY finished down 0.4% although the dollar closed marginally higher against the Yen. Despite the strength in equities commodities remained cautious with the CRB Index gaining 0.9% while NYMEX crude finished up 98-cents at $73.89. Markets this morning are steady with the Nikkei up 3.3% and HSI 1.9% although USD/JPY remains bid and has put some pressure on precious metals.
Gold traded around the $940 level initially Friday before tracking higher in Europe and rallying sharply on the US opening. Gold hit a high of $958.25 and traded out the rest of the day between $952-55.50 and closed with a gain of 1.25%. Data from the CFTC for the week of August 18th showed a 2.1Moz drop in net speculative longs to 21.07Mozs as longs were liquidated and fresh shorts added. Gold is relatively flat so far this morning as dollar bids offset stronger equities but for the moment we expect gold to continue to reflect risk sentiment while remaining in a choppy mood within the recent $930-65 area.

Silver tracked gold higher Friday to close with a gain of 1.7% and has edged higher overnight as firm base metals prices provide support. COT data showed that while 9.5Mozs of speculative longs were cut over 11Mozs of short were covered, and as a result the net long increased marginally by 1.59Moz to 235.75Mozs. Mixed choppy trade is likely to continue over the coming weeks with further chart support expected around the 100 DMA $13.79 with resistance anticipated at $14.70/15.15.

The PGMs finished Friday with solid gains after steady buying interest was seen across the day. Platinum gained $14 closing at $1255 while palladium added 2.5% touching its best level in almost a year at $284.
Palladium is little changed this morning while platinum has run into profit taking after NUM members accepted Impala’s pay offer, averting strike action set to start today.
COT data for the week of August 18th was mixed with net longs in platinum increasing 70.5Kozs to 870.05Kozs while a build in shorts led the net spec long to decline 30.1Kozs to 1.299Mozs.
Chart support in platinum is pegged at $1218 with resistance above at $1297 while palladium could look to target chart resistance at $292/305.


Published on
Mon, Aug 24 2009, 07:32 GMT
Archive
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Published On Fri, Mar 19 2010, 08:41 GMT
- Euro drags precious metals from highs
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