GOLD continues to consolidate above the $1,700 as market participants remain nervous over a number of issues including the 'fiscal cliff' and the possibility of a widening crisis over Israeli air strikes and potential ground assaults on the Gaza strip. Gold traded a $1,705 to $1,1717 range on Friday. Gold's status as a safe haven should see prices supported above $1,700 for now as investors remain fearful of an escalation of tensions and conflict in the Middle East. However, prices for other precious metals fell with silver, platinum and palladium all falling by more than 0.7%. There may be continued residual weakness in prices in response to last week's release by the World Gold Council that showed a demand drop for the metal of more than 10% in the third quarter. We believe that gold will hold above $1,705 for now.
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