Gold
Markets nervously await data this week including the important monthly jobs number which will likely again underline the risks of a double dip recession. While Asian shares advanced, European shares (London closed for a public holiday) have been more tentative this morning and the US futures are marginally positive. Currencies markets have not seen much movement but yen is stronger again today despite concerns that the government action will not be able to control currency price movements.
Gold is currently trading at $1,235.20/oz, €971.22/oz, £793.93/oz.
Gold – 10 Day (Tick)
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Gold and silver are marginally lower after last week’s 1% and 6% gain respectively. Gold is only a few percent below its record (nominal) high seen in June (see chart). Many analysts see new record highs could be achieved in gold’s traditionally strong September, especially as Indian gold demand looks set to be robust as the festival season kicks off on the subcontinent. Short term support for gold is at $1,210.85/oz and resistance is at $1,245/oz and at the record daily close of $1,256.80/oz (reached on 18/06/10).
Gold – 6 Month (Daily)
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Silver
While gold is very close to new record nominal highs, silver remains well below its all timerecord high of nearly $50/oz in 1980. The metal also remains below the multi yearrecord price reached in March 2008 at $20.81/oz (daily close – see chart). Silver is looking extremely positive technically and the correction and consolidation of the last 2 and a ½ years may be the foundations for higher prices in the coming months.
Silver – 5 Year (Daily)
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Value buyers continue to see silver as very attractive with the gold-silver ratio near 65. Most analysts believe that the gold-silver ratio will fall over time, resulting in higher silver prices versus gold. This is for a few reasons, one of which is silver’s significant industrial uses, meaning that its supply and demand fundamentals become more favourable versus gold over time. Silver’s safe haven credentials have been seen in recent months and silver appears to be increasingly trading like a currency rather than simply as a commodity. Should this trend continue, which seems likely, then silver’s ratio to gold could return to the levels seen in the 1970s – between 40 and 15.
Gold-Silver Ratio – 50 Years (Yearly)
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Silver is currently trading at $19.08/oz, €15.00/oz and £12.26/oz.
Platinum Group Metals
Platinum is trading at $1,526.00/oz, palladium is at $499/oz and rhodium is at $2,050/oz.
