Gold Stages a Good Comeback

Includes: GLD, SLV
by: GoldCore

Gold was under pressure for most of yesterday. However, the overly pessimistic view of the metal lifted in the late afternoon and it staged a good comeback, gaining $10/oz in under an hour. Two of the most respected investment powers in the US - PIMCO bond fund and Warren Buffett warned yesterday regarding risks posed to the dollar and this will have supported gold. PIMCO said that the dollar's reserve currency status was not guaranteed and Buffett warned regarding inflation and warned that the "gusher of federal money" threatened the dollar. Gold remains in a tight range and testing $960/oz, yet again, would be significant in the short term. However, there is still the possibility of a further move to the downside towards initial support of $925/oz. Below that, $905/oz is the next support but there should be plenty of interest at these levels with buyers looking for a basing point to enter and profit from the next leg up in the secular bull market. Gold is currently $944/oz.

Silver was stronger overnight and has moved back above $14.00/oz. It may still be vulnerable and a move to $13.00/oz could happen in the short term prior to rechallenging $15.00/oz. Silver is currently $14.01/oz.

Platinum Group Metals
Platinum is still finding good support from the market, particularly in light of the wage negotiations at the Impala mine are still unsettled. It is currently trading at $1,243/oz. Palladium is trading at $274/oz and rhodium at $1,600/oz.

Disclosure: No positions