Gold added 1.1 percent yesterday, the most in a week and is up marginally today and trading within 1.3 percent of its record nominal high of last week. Gold appears to be consolidating above $1,200/oz and this may be the pause that refreshes prior to new record highs. Gold has also risen in other currencies and is back above €1,000/oz as concerns about sovereign debt issues and economic growths in the eurozone continue.

Gold priced in sterling appears to be consolidating above £800/oz and the challenging fiscal and economic situation facing the new government will likely weigh on sterling. Gold is currently trading at $1,235/oz and in euro, GBP, CHF, and JPY terms, gold is trading at €1,006/oz, £835/oz, CHF 1,397/oz, JPY 113,221/oz respectively.

Oil is trading higher and near $77 a barrel and there are growing concerns about how the massive oil spill may affect the US economy and how it might affect the future of oil production. European investors and pensioners are concerned that the sharp fall in the value of BP and the risk posed to the substantial dividend payments will affect their portfolios.

Silver

Silver is currently trading at $18.59/oz, €15.12/oz and £12.56/oz. Silver has risen 0.3% today in USD and by much more in other currencies (see Cross Currency Table) and appears to have broken out and is again looking well technically with it having broken above $18.50/oz and showing a mini reverse head and shoulders pattern. Whether this is another false breakout remains to be seen but silver's fundamentals remain sound and the belief that it will begin to catch up with gold seems sound.

Platinum Group Metals

Platinum is trading at $1,585/oz and palladium is currently trading at $477/oz. Rhodium is at $2,425/oz.

Courtesy: Gold Core.com

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