Gold traded around the $870.00 mark overnight with silver tracking movements around the $16.60 level. The London AM Gold Fix at 1030 GMT this morning was at $872.25, £445.48 and €568.61 (from $878.00, £446.38 and €565.25 yesterday).

Gold continues to range between $850 and $880 and direction is destined to be influenced by the substantial amount of economic data due today. The BOE and ECB rate decisions coupled with U.S. Jobless Claims are the more likely influences. Both gold and silver seem to be tracking the euro while the situation in South Africa maintains support to all precious metals.

Gold seems well supported above previous resistance at the record nominal highs of $850 with physical demand playing an important role in keeping this level.

Today’s Data and Influences

Ahead of Today’s ECB meeting the euro reached a two month low against the dollar following yesterday’s weak German Manufacturing orders and Eurozone retails sales data. No change is expected in ECB policy today while the press conference scheduled for 1.30pm will be watched closely for Trichet’s insightful comments. Consensus views that the Bank of England leaves policy unchanged today but following very recent poor economic releases raises speculation on the timing of future rate cuts. U.S. Jobless Figures are due out at 1.30pm with consensus at 370k.

Silver

Silver is trading at $16.58 per ounce (1200 GMT).

PGMs

Platinum is trading at $1981 per ounce (1200 GMT).
Palladium is trading at $430 per ounce (1200 GMT).

Posted in Categories: Commodities, Contributor, External Research.

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