Gold trades at $943.30/oz with no significant moves over night. A disappointing durable goods number yesterday sent industrial stocks lower while US house prices posted their strongest results in three years. The Dow finished up neutral after a choppy day of trading. Overnight, the Asian markets closed mostly flat to down slightly on the back of investor cautiousness. Despite small falls in gold ETF holdings, they remain robust showing that allocations are ‘sticky’ and long term passive funds rather than hot money. Sarkozy’s comments yesterday that the dollar cannot remain the world’s reserve currency in a multi-polar world is another medium to long term dollar bearish omen.
Silver is trading at $14.26/oz.
Platinum Group Metals
The workers at the Impala Platinum plants in South Africa have rejected further wage increase proposals and are now seeking a 14% rise. There may be choppy trading and sharp rises in the PGMs until the striking parties come to an agreement with their employers. Platinum is trading at $1,236/oz while rhodium and palladium are trading at $1,650/oz and $285/oz respectively.