Gold Vulnerable to Short-term Correction

By: GoldCore

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
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.

Bullion Services Team

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.