As the dollar came under increasing pressure yesterday, gold surged to fresh highs, breaking through two levels of resistance ($1,020/oz and $1,033/oz) and is currently trading at $1,047/oz.

As we have seen in the recent past, such huge upward moves in the gold price usually precipitate a bout of profit taking. With no resistance now facing gold, resistance will come from the psychological levels of $1,050/oz and $1,100/oz. However, the anticipated profit taking may not materialise and this time it could be different as the price moves brought in fresh investors, as they were hedging not against short term dollar moves but hedging against the long term risks challenging the future of the dollar and other paper currencies. Many investors were waiting for gold to have a higher record daily close prior to entering the market. Many of the same analysts who have been bearish in recent years remain bearish with some continuing to call gold a speculative bubble. The record highs have not been greeted by fanfare in the media with much of the media actually not reporting the new record nominal highs. Thus, gold continues to climb a wall of worry in typical bull market fashion and there is no 'gold rush' and no 'mania' that is typical of speculative bubbles.

Silver gained over 4% and is still rising. It is currently trading at $17.45/oz.

Platinum Group Metals
All the PGMs gained on the back of the yesterday's news, especially palladium which is close to recovering 50% of its losses from last year. Platinum is $1,333/oz, palladium is $314/oz and rhodium is $1,575/$1,675/oz.