Gold: China has requested that a new global currency be discussed at next week's Group of Eight meeting in Italy. The news sent the dollar into a downward spiral and the price of gold rallied above $940, confirming its status as a currency hedge. The dollar has strengthened slightly today resulting in a small drop off in the gold price to $926.70. China has been pushing this agenda for some time now and while the dollar is unlikely to lose its reserve currency status anytime soon – uncertainty regarding the international monetary system should result in gold remaining in strong demand.
Silver: Silver has reacted to today's dollar strength as well, dropping to £13.31.
Platinum Group Metals: Platinum peaked briefly above $1,200 before slipping back to $1,180, palladium is holding strong at $250 and rhodium has dropped back to $1,310/$1,410.
Disclosure: No positions