Fundamental Precious Metals (2011-04-05)

<h3>Silver notably surpasses gold</h3>
By @ibtimes on

Silver notably surpasses gold

Silver prices marked their highest level since 1983 versus gold, where rising inflation threats in Europe continue to lure investors to target metals, along with MENA political unrest pushing traders to seek safety.

An ounce of gold bought 37.16 ounces of silver; compared with an average of 62.0 in the past decade.

Bullion for immediate delivery traded at $1,435.80 an ounce compared with the opening levels of $1,433.72 an ounce, while setting highs of $1,438.95 an ounce and lows of $1,433.35 an ounce. Futures gained 0.39% to trade at $1,438.600 an ounce.

The US dollar index, which tracks the performance of the currency against six-majors, traded at 76.08 compared with the opening levels of 75.88; while setting highs of 76.11 and lows of 75.85. Gold usually moves inversely with the dollar as commodities are a dollar weighted index.

Today's services' sector data from Europe is expected to show easing conditions in the sector during March, which may cause the dollar to rise further against the euro and thus sending metals to slightly decline as a correctional move.

Furthermore, investors await the release of FOMC Minutes to abstract further clues about the the US economy's health.

Technically speaking, gold'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 remains trading above 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 remains nullish 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 738.02; gaining by 6.58 percent, while the RJ/CRB commodity index closed at 362.18, after gaining 1.29 percent.

Major Metal Fixing

As for metal Fixes (Apr 4); Gold fixed at AM Fix was set at $1,432.50 an ounce while the PM fixing (Apr 4) was set at $1,435.50 an ounce; while silver fixing was set at $38.46000 an ounce and Platinum AM Fixing (Apr 4) was set at $1,779.00 an ounce, and at 1,781.00 an ounce during the PM fixing (Apr 4); finally, Palladium AM fixing set at $780.00 at (Apr 4) AM fixing, while the PM fixing (Apr 4) was set at $785.00 an ounce.

Other Metals

Silver for immediate delivery traded at $38.66 an ounce compared with the opening levels of $38.57 an ounce, while setting highs of $38.77 an ounce and lows of $38.54 an ounce. Silver future contracts traded higher by 0.48% or 0.186 to trade at 38.680 an ounce

Platinum for immediate delivery traded higher by $7.0, at $1,783.000 an ounce, while Palladium gained by $4.0.0 to trade at $783.00 an ounce.

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