Gold fell by $25 yesterday but has found reasonable support at $930/oz. In the short term, the daily momentum would appear to be bearish for gold and although it may experience a temporary bounce in the next day or two, a move to the downside should be expected, possibly falling as low as $905/oz. These short term factors should not detract from the longer term bullish run that gold will likely see in the seasonally bullish autumnal period as investors continue to hedge against deeply unpredictable currency and equity markets. A new high of $1,033/oz should be reached due to continuing risk aversion. The very poor US bond and treasury auctions, with demand for the unprecedented large issuance this week waning, does not bode well for the dollar in the coming weeks.
Silver is also continuing its move to the downside and has lost 62c since yesterday. In the short term there may be some more follow through and further falls but silver should make a bullish return in tandem with gold’s longer term, upward trajectory.
Platinum group metals
Platinum fell yesterday but has found a good measure of support at $1169/oz. Further support could come from the surprising news that both Honda and Nissan eked out small profits last quarter. Palladium also fell but rhodium is up to $1,600/$1,700/oz as refiners increase their demand from mines on the penultimate day of this month.