Gold is holding firm this morning at $951.30/oz. China’s massive stock market falls yesterday may have created safe haven demand for gold overnight. Tomorrow sees the release of Swiss GDP data, German unemployment figures and UK Purchasing Managers Index data, which are not expected to be startling either way but which are likely to be imbued with negativity. This data, coupled with sterling weakness and the overall turmoil, has some investors playing a waiting game on preferred entry points to buy gold, which has the potential for an exceptional September. Others wary of missing the rally or throwing the towel in and buying in anticipation of the traditional strong autumnal period. In the short term, gold will need to break through $955/oz in order to rechallenge the $970/oz level and the psychological $1,000/oz level.
Silver has de-coupled slightly from gold and is showing a strong bullish sentiment. It touched $15/oz this morning and will need to break through that again for it to challenge resistance at the $16/oz level. Silver is currently trading at $14.88/oz.
Platinum Group Metals
The National Union of Mineworkers and Impala Platinum have agreed to further talks to try and settle the wage dispute. If these talks break down there could be the possibility of a cessation of production in the world’s largest platinum producer. With this in mind, there is good demand for platinum with nearly 500kg being turned over on the Shanghai Gold Exchange last night. It is currently trading at $1,245/oz. Palladium is currently $292/oz and rhodium $1,575/$1,675/oz.