Gold’s sell off continues and momentum remains down with gold having fallen nearly 10% in recent days (from $1225/oz to nearly $1,100/oz). Further falls are possible but strong physical demand will see gold well supported above previous strong resistance at the previous record high of $1,030/oz.
The toxic combination of surging public debt, sovereign debt risks for many nations (including large industrial nations) and concerns regarding the sustainability of economic growth and the growing risk of double dip recessions will lead to continuing safe haven demand. A ray of hope for gold’s short term prospects was seen in the very positive action in the mining sector yesterday (with the XAU and HUI up 2.6% and 2.8% respectively) and this has often been a leading indicator of a bottoming in the gold price.
Silver is trading at $17.81/oz and continues to take its direction from gold. In euro and GBP terms silver is trading at €11.80/oz and £10.67/oz.
Platinum Group Metals
Platinum is trading at $1,414/oz while rhodium and palladium are trading at $2,300/oz and $363/oz respectively.
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