Concerns about a slowdown in the Chinese economy affecting Asian economies and the global economy led to risk aversion which saw oil and commodity prices and commodity currencies down on the day; this contributed to gold's weakness. Government bonds benefitted despite growing concerns that the coming massive issuance may affect their safe haven status. This will likely enhance gold's safe haven status and contribute to continuing robust gold demand.
South Korean intervention in the foreign exchange market to depreciate the won signals the continuing risk of competitive currency devaluations in Asia and internationally, as seen in Hugo Chavez's massive devaluation yesterday.
Tensions with Iran remain escalated and Iran has accused the US and Israel of assassinating a leading Iranian nuclear scientist. Macroeconomic and geopolitical risk remain real and present and should see gold remain well bid above support at $1,080/oz.
Silver Silver reached as low as $18.19/oz overnight but it has recovered since. Silver is currently trading at $18.36/oz, €12.68/oz and £11.30/oz.
Platinum Group Metals Platinum is trading at $1,578/oz and palladium is currently trading at $427/oz. Rhodium is at $2,750/oz.