Gold steadied on Friday as the dollar index reversed earlier losses but it is still taking its direction from the currency markets. The dollar remains in a very tight range ahead of a Federal Reserve meeting next week. Furthermore, the lack of any sell-off in gold in the wake of the latest IMF gold sale would indicate that the effect of these sales is already factored into the price.
The IMF also declared that it “should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies."
Gold is currently trading at $931/£564/€669.
Silver opened weaker this morning and has dipped below $14, currently trading at $13.98.
Platinum Group Metals
Platinum also opened weaker this morning, losing $18 in morning trading alone. The raft of recent news items (strikes, temporary closure of equipment) in South Africa should still offer a level of support for the metal, but this sell off could indicate a short term bearish sentiment for the Group. Platinum is currently trading at $1187.