Very strong resistance at $966/oz proved too tough for gold yesterday as the markets allowed doubts that the recent surge in the price could not be sustained creep in. Gold slipped some 1% to $935/oz, not helped by a rally in the dollar that saw gold fall slightly. Technically, the momentum over the short term seems to indicate that the price will fall further and strong support at $905/oz, could be significant. A myriad of problems still plague the dollar and this rally should be short lived and a gold price of over $1000/oz before the year-end seems increasingly likely. Continuing risk aversion will see gold well supported close to these levels. South African gold mine producers agreed on pay increases of between 9-10% with mine workers yesterday, concluding negotiations and hopefully settling recent tensions between management and staff.
Silver was also unable to keep hold of its recent gains and dropped below $14/oz and is currently trading at $13.58/oz.
Platinum group metals
Platinum and palladium also dropped off in price yesterday but with the end of the month approaching, demand for rhodium from refiners saw the metal gain in price, trading at $1625/$1725/oz.