$960/oz had proved to be a very strong level of resistance as investors doubted whether gold could sustain itself above that in the short term. $960/oz should now be seen as a level of support as gold pushed up to touch $970/oz yesterday. It is currently trading at $964.80/oz and with the dollar under increasing pressure a series of closes above $960/oz should see gold pushing to fresh highs. Especially as the dollar has broken down technically (to below 78.0 on the US Dollar Index) and looks vulnerable to sharp falls in the coming weeks as US creditors grow wary of funding the ballooning US deficits.
Silver is looking particularly strong and also gaining momentum and has already broken through the first level of resistance of $14.68/oz and is trading at $14.71/oz. The next levels of resistance are $14.87/oz and $15.00/oz.
Platinum group metals
A very vibrant night of trading on the Shanghai Gold Exchange has seen an increase in demand for platinum and it is currently trading at $1,281/oz coming out of a long period of support and resistance in the $1,100/$1,200/oz range. If this run continues, look for the metal to test $1,300/oz. Palladium is trading at $277/oz, looking to test $300/oz and rhodium is currently $1,625/$1,725/oz.