Gold Holding Steady at the $930 level

By: GoldCore

Higher than expected inflation figures out of the U.S yesterday buoyed the price of gold. Gold is holding steady at the $930 level, recovering from some of its recent losses. Gold’s fundamentals remain sound and the news that David Einhorn’s Greenlight Capital Inc. hedge fund has moved its gold position from an ETF into physical bullion in the second quarter, will further bolster the case for physical possession of the yellow metal to hedge against possible financial and economic difficulties.

Markets remain sceptical of the deepening swine flu crisis (after false alarms in recent years) but a pandemic would obviously affect economies badly and put already strained government budgets under even more pressure. It is yet to be seen whether this is another false alarm or it may be the case of “the boy who cried wolf” and we may actually see a global pandemic with attendant financial and economic fallout.

Silver
The charts yesterday indicated that silver would meet serious resistance to break through $13. Silver charged through the $13 barrier and is currently trading at $13.12. Look for a move upwards to the high $13.20’s.

Platinum Group Metals
Platinum also moved upwards yesterday and over 280kgs were bought on the Shanghai Gold Exchange overnight, up from a paltry 96kgs the night before. Palladium is a little stodgy at $242 but should still challenge $250. Rhodium is trading at $1325/$1425.

Bullion Services Team

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

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