Gold is presently trading at $925.00 and seems to be looking for guidance from currency movements. The market remains directionless with GBP/USD, EUR/USD and stock markets having come off their yearly peak at the start of June. The range still remains $913 to $945. One should be cognisant that this drifting price range remains despite the unfolding deteriorating economic backdrop. In the US, California’s debt rating was slashed to near Junk overnight while this morning in the UK it has been confirmed that British manufacturing output unexpectedly shrank in May, making it less likely that the economy returns to growth in the second quarter of 2009. Sterling is likely to come under pressure again as there are increasing concerns about the huge UK debt issuance and oversupply of UK government bonds – some asset managers and banks are calling for the UK to issue debt denominated in foreign currencies. This should see gold in sterling continue to rise.
With the market trading at $13.26 a similar story can be reiterated for silver with a current range of $13.00 to $13.63.
Platinum is currently trading at $1,143.00 and rhodium at $1,1285.00.