Gold is continuing its positive momentum and hit a 7 week high of $958.40/oz earlier this morning. If it continues this positive run, all time highs are likely to be challenged when it can break through, and stay above, a major resistance of $966/oz. Any correction is expected to be short lived as continuing dollar weakness and a higher oil prices add to the positive fundamentals of gold. Gold’s strength is all the more remarkable given the fact that the western consumer world has been a massive seller of gold in recent months (very significant scrap jewellery sales) and yet despite this very large increase in supply gold remains near record highs (nominally). Gold’s traditionally weak period is the summer months, when market participants take holidays and physical demand slows, is coming to an end in the coming weeks and the end of the summer doldrums should see gold target the $1,000/oz mark once again.
Silver broke through the $14.00 level and went as high as $14.08. A sustained hold above $14/oz would be a positive sign for silver and could see it quickly challenge $15/oz.
Platinum group metals
Platinum closed last month at $1,206/oz and promptly fell below $1,200/oz for the whole of July. It pushed through $1,200/oz last night and briefly touched $1,209/oz before settling at $1,204/oz. Palladium seems to have stalled slightly at $256/oz and rhodium is $15,10/oz/$1,610/oz.