Gold has maintained last week's and yesterday's gain and is currently trading near record nominal highs at $1,166/oz, £705/oz and €781/oz. New levels of resistance and support are $1,175/oz and $1,152/oz.
While gold is overbought in the short term it is behaving like a stubborn mule that refuses to go down. A variety of concerns continue to support gold and these include worries regarding the sustainability of the economic recovery (both in China, the US and in other leading industrial nations), the weakening dollar and the long term devaluation of currencies and medium and long term risk of inflation. Oil prices near $80 a barrel and Middle East geopolitical concerns are also supportive. Another factor that has not received much attention but that may have added to the impetus of gold's rise in recent days are fears that the Federal Reserve may lose its independence due to the US House of Representatives' amendment to audit the Federal Reserve.
Silver remains robust and is currently trading at $18.60/oz, £11.21/oz and €12.41/oz.
Platinum Group Metals
Platinum is $1,451/oz, palladium is $371/oz and rhodium is $2,600/$2,700/oz.