As the dollar regained some of its recent losses, gold has fallen off slightly and is currently trading at $953/oz. Although it may be vulnerable to a correction in the short term, this will merely serve as an excellent buying opportunity. When even the most gold phobic investment managers are predicting new highs in gold, recent analysis stating that gold will have a very bullish end to 2009 should not go unheeded. The new central bank gold agreement shows that the "anti gold" sentiment of some central banks seen in the 1990s is being replaced by a renewed respect for gold's inflation risk and systemic risk hedging properties. Gold is no longer a "barbarous relic" and gold's safe haven asset and important monetary role is again being realised by market participants internationally.
Silver has followed gold's slight downward trajectory and is down 13c to $14.47/oz today.
Platinum group metals
Only palladium is holding on to its recent gains but failing to move away from the $270s/oz. However, the whole group is being well supported by the threat of supply issues. This issue is in tandem with Eskom, the South African electricity provider offering a 10.5% wage increase in the hope of averting strike action. We will find out if this deal has been accepted on Wednesday, with the market waiting to gain direction from that result. Platinum is currently $1,248/oz and rhodium $1,525/1,625/oz.
Disclosure: No positions