GoldCore Precious Metals Update – China Voices Dollar Concerns at G20 Summit in Pittsburgh
Gold fell yesterday on technical driven profit taking and is currently trading at $996.75/oz. It traded in a range overnight of $991-$999/oz. Support is now at $990/oz and resistance is at the recent high at $1,024/oz. All eyes are on the G20 summit in Pittsburgh and trading is likely to be cautious prior to the meeting.
The dollar fell this morning after a draft communiqué from the G20 suggesting that interest rates, including those in the United States, would remain low for the foreseeable future. Tensions remain and have yet to be resolved and China and other US creditor nations are increasingly concerned and vocal regarding the ultra loose fiscal and monetary policies in the US and, to a lesser extent, the UK. A senior official from China’s central bank said Thursday that stability of the weak US dollar is critical to the global economic recovery. China’s continuing call for a review of the dollar as the world’s reserve currency has led Treasury Secretary Geithner to issue the usual assurances of the ‘strong dollar’ policy at the start of the G20 summit. Growing concerns about the dollar’s continuing role as the sole global reserve currency should see gold well supported at these levels.
Silver is currently trading at $16.25/oz.
Platinum group metals
Platinum is currently trading at $1,298/oz while palladium trades at $293/oz and rhodium at $1,650/oz.