The continued, short term strength of the dollar has seen gold€™s safe haven and hedging attributes tested against the dollar today and the metal has slipped from $947/oz to $940/oz. However, these same attributes are coming to the fore against sterling. As the UK braces itself for the worst jobless figures in 15 years and Mervyn King, the Governer of the Bank of England, likely to ask people to temper their expectations about the economic recovery in his speech regarding inflation today, gold is up against sterling in early morning trading. The raft of economic measures introduced globally to combat recession may turn out to be built on sand and investors will increasingly look to the yellow metal as being a more solid investment to safeguard their wealth.
Silver is closely following the movements of gold at the moment and has slipped nearly 1% today to $14.16/oz.
Platinum group metals
All the metals in this group have dropped this morning. Platinum is down $11 to $1,223/oz, palladium down $4 to $266/oz and rhodium to $1,525/$1,625/oz.