Despite a firmer dollar in yesterday’s trading, gold maintained its robust showing of the last few days and finished the day slightly higher. It is trading at a resistance level of $955/oz today. With equity weakness still very much to the fore, a sustained push for that all important, psychological level of $1,000/oz and beyond on safe haven demand seems likely in the coming weeks. Prudent investors continue to diversify into gold but there is some money on the sidelines awaiting one last sell off. However, they may miss the boat – nobody has a crystal ball and markets tend to do the opposite of what many participants expect. The best time to buy is late summer – particularly in August. As gold has not moved up yet it still remains a great buying opportunity both for a short term rally but more importantly as a long term financial insurance and safe haven diversification in a portfolio.
Silver is looking very robust and tested resistance of $15/oz for most of yesterday and closed higher above the $15/oz mark. It is currently trading at $14.95/oz.
Platinum Group Metals
Talks are still ongoing between the National Union of Mine workers and Impala Platinum in South Africa. Despite this, platinum lost ground yesterday and is trading at $1,212/oz. Palladium also pushed back from its recent highs and is currently trading at $280/oz and rhodium is at $1,550/$1,650/oz.