Gold failed to settle above $960.0/oz yesterday despite the EUR/USD breaking its previous high and touching 1.4445. Gold will have to settle above $960.00/oz for it to test its previous high of $1,033.00/oz but a lackluster performance over the last few trading days suggests it is having difficulty. Direction today will come in the form of inflation figures out of Europe and the US, and the closely watched US Home Sales. If gold does break through $960.00/oz the next resistance will be $981.00/oz. Failing that we will revert to the current range of $905 – $960/oz.
Silver continues to look to gold for direction with near term support and resistance at $14.09/oz and $14.48/oz respectively.
Platinum group metals
Despite an agreement in South Africa on Friday, negotiations remain ongoing within the PGM Sector. Good news for the PGMs came in the form of higher than expected US July auto sales yesterday. This coupled with soundings from the manufacturers that they intend to increase depleted inventory, leaves platinum trading at $1,223.00/oz and rhodium at $1,650.00/oz.