Trading in gold has been fairly static this morning with the market looking for direction from the release of non-farm payroll data, due out today. A bullish note for the long term prospects of gold was chimed today on the news that the ECB has agreed to only sell 400 tonnes of gold per annum over the next 5 years, down 100 tonnes per annum from previous announcements. Importantly, the ECB said that, gold remains an important element of global monetary reserves. With annual demand already outstripping production, this news will bolster the viability of gold as a diversifier and inflation hedge.
Silver is holding steady above $14.50/oz and is currently trading at $14.57/oz.
Platinum group metals
Although platinum is down $23 to $1,237/oz in early trading there is still a lot of support for the entire group. The US government car trade-in scheme has garnered additional funding and although the possibility of a strike by the state electricity provider in South Africa, the main provider of platinum may be subsiding, investors are still hedging against the prospect that if the lights do go out in the mines, then we could be looking at the platinum price soaring above the $2,000/oz level as it did the last time there were electricity supply problems. Palladium is at $266/oz and rhodium $1,625/$1,725/oz.