Fundamental Precious Metals (2011-03-24)

<h3>Gold extends weekly rally, trades near record</h3>
By @ibtimes on

Gold extends weekly rally, trades near record

The precious metal extended its six day advance and inclined to trade near record as Libya's unrest persist for another day, spurring demand for haven. Silver trades at 31-year peak.

Bullion for immediate delivery trades at $1,439.51 an ounce compared with the opening levels of $1,437.75 an ounce, while setting a high of $1,439.58 an ounce and a low of $1,435.71 an ounce. Futures fell 0.03% to trade at $1,437.500 an ounce.

The US dollar index, which tracks the performance of the currency against six-majors, traded at 75.93, compared with the opening levels of 75.89 while setting a high of 76.03 and a low of 75.81. Gold usually moves inversely with the dollar as commodities are a dollar weighted index.

Sovereign debt problems in Europe returned to haunt markets along with the escalating tension in the Middle East that continue to push traders into preserving their wealth by targeting the precious metal.

Allied attacks performed by the U.S., U.K and France to ground Muammar Qaddafi's air force will ease, Defense Secretary Robert Gibbs said yesterday, allowing rebels to push outside their stronghold in Benghazi city. Oil continues to trade above $100.0 a barrel on MENA's unrest.

Technically speaking, the metal's trend remains to the upside as far as the support at $1,390.00 an ounce remains intact and the dollar continues to weaken, while the 100-day MA support level is set at 1,374.00 an ounce.

Gold's trading remains above the support at 1,425.00 an ounce, where if breached it will pave the way for the pair to test the support at %1,410.00 an ounce, but the general trend remain to the upside with initial targets set at 1,435.00 an ounce and probably return to trade near the achieved record around $1,445.00 an ounce.

The S&P GSCI index closed trading at 716.53; higher by 1.53 percent, while the RJ/CRB commodity index closed at 357.03, after gaining 0.58 percent.

Major Metal Fixing

As for metal Fixes (Mar 23); Gold fixed at AM Fix was set at $1,433.00 an ounce while the PM fixing (MAR 23) was set at $1,439.50 an ounce; meanwhile silver fixing was set at $36.58000 an ounce and Platinum AM Fixing (Mar 23) was set at $1,741.00 an ounce, and at 1,744.00 an ounce during the PM fixing (Mar 23); finally ending with Palladium AM fixing set at $742.00 at (Mar 23) AM fixing, while the PM fixing (Mar 23) was set at $739.00 an ounce.

Other Metals

Silver for immediate delivery traded at $37.46 an ounce compared with the opening levels of $37.37 an ounce, while setting a high of $37.56 an ounce and a low of $37.18 an ounce. Silver future contracts traded higher by 0.14% or 0.052 to trade at 37.250 an ounce

Platinum for immediate delivery traded lower by $1.50, at $1,753.000 an ounce, while Palladium gained by $6.0 to trade at $749.50 an ounce.

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