Fundamental Precious Metals (2011-04-06)

<h3>Gold sets new record, silver at 31-year high</h3>
By @ibtimes on

Gold sets new record, silver at 31-year high

Commodities surged as inflation threats and debt woes intensified among investors. Moody's Investors Services downgraded Portugal's debt rating, while the rise in oil prices due to MENA unrest sparked price acceleration fears among traders to hedge against inflation by targeting gold.

Yesterday, an ounce of gold bought 37.16 ounces of silver; this is compared with an average of 62.0 in the past decade, allowing Silver to surpass gold.

Bullion for immediate delivery traded at $1,458.12 an ounce compared with the opening levels of $1,455.67 an ounce, while setting a high of $1,458.80 an ounce and a low of $1,451.25 an ounce. Futures gained 0.34% to trade at $1,457.500 an ounce.

The US dollar index, which tracks the performance of the currency against six-majors, traded at 75.57, compared with the opening levels of 75.88 while setting a high of 75.95 and a low of 75.53. Gold usually moves inversely with the dollar as commodities are a dollar weighted index.

Today's GDP data from the euro-zone will hold not affect trading where investors await tomorrow's rate decision by ECB and BoE which is expected to witness a tightening in monetary policy by the European Central Bank.

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'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 1,460.00 an ounce and probably achieve new historic highs above those levels

The S&P GSCI index closed trading at 740.75; gaining by 2.73 points, while the RJ/CRB commodity index closed at 363.11, after gaining 0.93 points.

Major Metal Fixing

As for metal Fixes (Apr 5); Gold fixed at AM Fix was set at $1,434.50 an ounce while the PM fixing (Apr 5) was set at $1,433.50 an ounce; meanwhile silver fixing was set at $38.08000 an ounce and Platinum AM Fixing (Apr 5) was set at $1,788.00 an ounce, and at 1,787.00 an ounce during the PM fixing (Apr 5); finally ending with Palladium AM fixing set at $785.00 at (Apr 5) AM fixing, while the PM fixing (Apr 5) was set at $780.00 an ounce.

Other Metals

Silver for immediate delivery traded at $39.39 an ounce compared with the opening levels of $39.29 an ounce, while setting a high of $39.48 an ounce and a low of $39.03 an ounce. Silver future contracts traded higher by 0.48% or 0.187 to trade at 39.370 an ounce

Platinum for immediate delivery traded higher by $11.0, at $1,793.000 an ounce, while Palladium gained by $5.0 to trade at $784.00 an ounce.

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