Gold pulled back slightly yesterday on profit taking and a firmer dollar. However, gold stubbornly refused to budge from the $1,000/oz price level and pushed back through that level last night as the dollar fell again. Gold's fundamentals remain very sound and yet most analysts remain bearish and much of the media has greeted gold's near record highs with tremendous scepticism. These are classic signs of a long term secular bull market as gold continues to climb the wall of worry. The current recovery looks like another dead cat bounce as many of the structural issues facing western economies in particular remain problematic, (household debt levels remain extremely high and public debt is soaring). While deflation remains the short term threat, inflation internationally and the unmentionable 'stagflation'remain the real medium and long term threats. Gold is currently trading at $1,013.20/oz and new record highs seem very likely in the near future.
Silver also rebounded, breaching $17.00/oz and is currently trading at $17.17/oz.
Platinum group metals
Platinum is currently $1,327/oz, palladium looks set to breach $300/oz, where it will meet resistance. It is currently at $299/oz. Rhodium is at $1,550/$1,700/oz.