GoldCore Update: 2010’s First Day of Trading: Precious Metals Rise in Asia and Europe

Posted on Monday, January 4th, 2010 and is filed under Forex School. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Mon, Jan 4 2010, 13:01 GMT
Gold range traded overnight from $1,099/oz to $1,103/oz but it has
since moved up some 1.7%. Gold is currently trading at $1,112.00/oz and
in euro and GBP terms, gold is trading at €775/oz and £688/oz
respectively.
Gold is stronger today due to the weaker dollar and positive Chinese
economic data which bodes well for demand for gold in China as we
approach the Chinese New Year. Also supporting gold are higher oil
prices due to the cold winter in the northern hemisphere and the
Russia-Belarus oil row. While talk of a Russian threat to European oil
and gas supply is exaggerated, it is a reminder that geopolitical risks
remain.
Traders will look to US manufacturing data today and employment data
later in the week for cues. Demand remains robust below $1,100/oz with
many willing to buy on the dip at these levels. Many of the
fundamentals reasons for gold’s 25% rise in 2009 remain in place -
quantitative easing, competitive currency devaluation, sovereign debt
risk, inflation and interest rate risk and geopolitical risk. These
risks look set to remain for 2010 and thus gold’s fundamentals remain
sound.
Silver traded between $16.90/oz and $17.05/oz overnight. Silver is up
by over 1.5% and is currently trading at $17.10/oz, €11.92/oz and
£10.58/oz.
Platinum is trading at $1,490/oz and palladium is currently trading at $418/oz. While rhodium is at $2,550/oz.
Palladium has surged by over 3.5% and platinum by over 2% on an
increasingly favourable view for commodity prices for 2010. The launch
of the platinum and palladium US ETFs will likely lead to a substantial
increase in investor demand which should lead to higher prices as it
did for the US gold and silver ETFs.

fxstreet.com

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