Gold is currently trading at $1,001.80/oz and has bounced from a low of $991/oz and continues to follow currency movements. This week is the first week of the new Central Banks Gold Agreement, which caps gold sales from official reserves.
The third CBGA pact, which will run until September 2014, will limit gold sales to 400 tonnes a year, down from 500 tonnes from 2004-2009 pact. Western central banks are increasingly reluctant to deplete their gold reserves and with central banks internationally becoming net buyers of gold (particularly the Chinese in what is becoming known as the ‘Chinese gold put’), the yellow metal is likely to be well supported in the mid to high $900/oz region.
Silver is currently trading at $16.43/oz.
Platinum group metals
The platinum group metals are relatively unchanged today with platinum trading at $1,280/oz, rhodium at $1,650/oz and palladium at $290/oz.