Gold rose again yesterday (marginally) and then dipped to $1,118.50/oz overnight and has recovered since. Gold is currently trading at $1,125.00/oz and in euro and GBP terms, gold has risen and is trading at €784/oz and £702/oz respectively. Gold is back above £700/oz as sterling has weakened on increasing concerns about the very large UK fiscal deficits. Gold priced in euro also remains robust as there are lingering concerns about the problems in Iceland but more importantly in Greece (not to mention Ireland and Spain).
Mixed economic data has seen mixed performance in various markets. The majority of Asian equity indices were up overnight while European indices are mostly slightly down so far this morning. Gold is being supported by oil back at a 15 month high at nearly $82 a barrel. Economic optimism has also seen copper rise to new 16-months highs and this in conjunction with the recent rise in many other commodities is supportive of gold (and silver – see below).
Silver fell to as low as $17.75/oz overnight but that fall was short lived. Silver is currently trading at $18.00/oz, €12.50/oz and £11.19/oz.
Silver has risen by 6.2% year to date (see performance table above) but remains well below its record recent high of $20.88/oz in March 2008. It is important to remember that this was only a recent record nominal high.
After nearly a 2 year period of correction and consolidation, silver looks set to challenge that high in the coming months. We continue to be bullish on gold but particularly on silver and believe that silver will likely surpass its non inflation adjusted high of $48.70 per ounce (in 1980) and its inflation adjusted high of some $130 per ounce in the coming years – http://www.goldcore.com/us/research/silver-set-to-soar-as-it-did-in-the-1970s/.
Platinum Group Metals
Platinum is trading at $1,540/oz and palladium is currently trading at $424/oz. Rhodium is at $2,700/oz.
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