GoldCore Precious Metals Update
Gold is currently trading at $954/oz after finishing higher last week which was important technically. Gold is looking to close the month of August with a monthly higher close (July 31st close $953.75/oz) but the shorts will as ever be attempting to paint the tape. Expectations for gold to break above resistance at $1,000/oz in the coming months are growing and any dips are expected to be bought. Overnight, the equity markets closed down with the Shanghai market leading the way with a 6.7% plunge. The Nikkei took little comfort from the sweeping success of the Democratic Party over the lengthy rule of the LDP and closed down 0.4%. This is a big week in terms of economic releases and Friday’s nonfarm payrolls will be watched closely to see if the green shoots are being affected by an autumnal chill.
Silver rallied sharply to close the week over 4% higher and its higher weekly close (like gold) is important technically. Silver closed at $13.89/oz on July 31st and is thus up sharply for the month of August and the higher monthly close sets us up for a strong autumnal period. It is currently trading at $14.64/oz.
Platinum Group Metals
The strike at the Impala Platinum Plant in South Africa, the country’s second largest producer, is entering its second week after mineworkers rejected a pay offer. The threat of other plants joining the strike is increasing with every hour. The strikers cause is not being helped by the state of the car manufacturing industry where capacity is predicted to fall due to the current economic environment. Platinum is currently trading at $1,248/oz while rhodium and palladium are trading at $1,650/oz and $291/oz. Palladium reached a 2009 high on Friday.