By Walter de Wet
Gold continues to find good support at $1,100; this level held on both Wednesday and Friday last week. It held again yesterday. We continue to see good physical buying at just above $1,100.

At the US Fed’s next monetary policy move, we expect no rate change. However, we expect monetary tightening measures. Gold support is at $1,100 and $1,089; resistance is at $1,116 and $1,123.

Platinum is holding steady above $1,600. Should gold break lower, platinum could follow. Our platinum view remains unchanged — we expect any liquidation to temporary. We favor buying platinum on dips.

Euro zone new car registrations for February out this morning — new registrations in Europe were up 3% y/y. In absolute numbers, passenger car registrations were 835,706 units. This is slightly lower than the 843,883 sold in January.

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For auto sales in global terms, between China, Japan, Europe and the US, car sales raised 21% y/y in February. More cars sold that 570K in Feb 2010 than in Feb 2009. It is also in line with Feb 2008 sales, and almost 90K more vehicles sold than in Feb 2007.

Given the still sluggish economic growth in many economies, we view these auto sales figures as impressive. Of course, much of the growth is auto sales are due to very strong Chinese demand.

Silver is holding steady. While silver’s speculative interest (according to CFTC data) remains low, compared to platinum, palladium and gold, it is starting to look extended on a historical basis — the risk of a correction may be increasing. Silver support is at $16.90 and $16.75; resistance is at $17.30.

Courtesy: Standard Bank

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