Gold fell 2.2% yesterday and has fallen again in early London trading and is testing support at $1,100/oz. More significant support is at $1,080/oz and a close below that level could lead to a fall to stronger support at previous resistance at $1,030/oz. Gold is currently trading at $1,105.00/oz and in euro and GBP terms, gold is trading at €787/oz and £684/oz respectively. The possible insolvency of Greece with the attendant negative ramifications for the euro is seeing gold continually test the €800/oz mark.
Increased risk aversion on the uncertain global economic outlook and concerns regarding the inevitable withdrawal of stimulus has seen equity markets come under pressure. Concerns that Chinese lending restrictions might curb economic growth in China also contributed. Gold has fallen with equities as it often does in the short term but as in recent years gold’s correlation with equities will likely be short term and safe haven buyers are waiting to buy on the dips.
Silver started the day at $17.92/oz but it has dropped off since to trade at $17.65/oz, €12.56/oz and £10.92/oz.
Platinum Group Metals
Platinum is trading at $1,633/oz and palladium is currently trading at $472/oz. Rhodium is at $2,775/oz.