Gold reached a new nominal high overnight of $1,216.73/oz. Gold is currently trading at $1,214.40/oz and in euro and sterling terms, it is trading at €804/oz and £731/oz respectively.
Gold reached new record nominal highs over $1,215/oz this morning as the dollar continued to weaken and wider fears of competitive currency devaluations and the debasement of currencies leads to long term inflationary fears. Concerns that markets may be underestimating the risk of contagion posed by the Dubai sovereign default are likely supporting gold at these levels and leading to safe haven demand. Gold's 'perfect storm' is also being aided by continuingly elevated oil prices, geopolitical risks and concerns about the vitality of the recent economic recovery.
The Commitment of Traders gold data is important and shows that there is a record short/long position but it is important to note that actual Open Interest is not at record levels yet which suggests that there is room for gold to advance higher prior to a correction and consolidation.
Silver went as high as $19.35/oz overnight but it has experienced a slight pullback this morning. Silver is currently trading at $19.22/oz, €12.72/oz and £11.57/oz.
The Commitment of Traders silver data is also significant. It shows that there is a record short/long position but it is important to note that actual Open Interest is not at record levels yet which suggests that there is room for silver to advance higher and reach its recent record nominal highs (as gold has done) over $20/oz in the coming weeks.
Platinum Group Metals
Platinum is trading at $1,497/oz and palladium is currently trading at $390/oz, while rhodium is at $2,725/oz.