Gold fell a further 1% yesterday and is trading at $1,093.80/oz. In euro and GBP terms gold is trading at €774/oz and £673/oz. Support for gold is currently seen at $1,088/oz and resistance at $1,112/oz.
The sell off in the equity, gold and other markets is being blamed on President Obama's proposals to reform Wall Street and the banking industry. While this is a contributory factor, equity markets were due a correction and the recent poor jobs and inflation data coupled with concerns regarding China's economic growth are likely of more significance.
As ever, gold is again correlated with equity markets in the short term but gold's sell off is likely to be of short duration and support is at $1,080/oz and strong support at $1,030/oz. Further weakness in stock markets will again likely see gold's medium and long term inverse correlation to stock markets reasserted and gold's safe haven attributes come to the fore.
Silver is trading at $17.44/oz In euro and GBP terms silver is trading at €12.31/oz and £10.72/oz.
Platinum Group Metals
Platinum is trading at $1,555/oz while rhodium and palladium are trading at $2.500/oz and $436/oz respectively.