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Gold is currently trading at $1,054.60/oz. In euro and GBP terms, gold is trading at €704.60/oz and £637/oz. Support for gold is currently seen at $1,043/oz and resistance at $1,070/oz.

Cheap money and the massive international liquidity injection has again risen all boats but the question is whether the gains seen in nearly all asset classes are sustainable. Elevated gold prices suggest that smart money internationally is concerned about the long term implications of current loose fiscal and monetary policies. Many large hedge funds, central banks, high net worth and retail investors are also concerned about the outlook for the dollar.

Concerns about the decline in the dollar creating deflationary pressures in European, Japanese and other economies may lead to tense meetings at the upcoming meeting of finance ministers from the world's 20 largest economies, taking place in Scotland on November 6th and 7th. There is a realization that the “strong dollar policy” is no longer the thrust of US policy. An overriding US policy objective may now be to ensure that the benign and orderly falls to date do not become a disorderly dollar unraveling.

Global Money Supply

Silver is trading at $17.48/oz. In euro and GBP terms silver is trading at €11.66/oz and £10.54/oz.

Platinum Group Metals
Platinum is trading at $1,355/oz while rhodium and palladium are trading at $1,800/oz and $330/oz respectively.

Disclosure: no positions