Gold’s Short-Term Movements Remain Linked To The US Dollar

Gold: Gold’s short term movements are still intrinsically linked to whatever the dollar is doing at the moment. Gold is currently trading at $949.50 and $950 seems to be where the market is settling for the time being. In the medium to long term, gold will still be sought after by investors wishing to hedge against very real inflationary worries. The US bond market is under huge pressure with increasing yields. A huge sell off would spark a fall in the dollar and a rise in long term interest rates.

Another very important piece of news regarding the positive long term future of gold was reported in Reuters today. Marcus Grubb, the World Gold Council’s head of investment, research and marketing, told delegates at a meeting in London that central banks may be justified in increasing their gold holdings to 40-50 percent of their reserves. He further stated that the current macroeconomic environment supported gold buying: ‘It is not only about the dollar, not only about diversification, but also about future inflation,’ he said.

There were signs that a number of Asian central banks were adding to their gold reserves, he added.

Silver: Where is silver going? Will it test support at $14.75 or will it break from its current lethargy and test $15.63

Platinum: Platinum is trading at $1,255 this morning with support at $1,220 and resistance at $1,300. With the recent positive inflows into platinum ETF Securities this week, the platinum price could be further buoyed by the SEC decision later today or whether it will allow a platinum ETF in the US.

Rhodium: Rhodium is trading in a similar range to yesterday at $1,425/ $1,525

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