LONDON (Commodity Online): A stronger dollar saw gold fall from $1,019 to $992 in NY trade yesterday, however, physical market buying interest in early Asian trade saw the metal climb back to $998 heading into this morning, before coming off the boil again.

As far as ETF holdings are concerned, the SPDR Gold Trust ETF, the largest gold-backed ETF, liquidated 7.63 metric tonnes from its gold investment holdings yesterday. Some of this activity was offset however by ETF Securities Ltd, which showed a 3,934oz increase yesterday to 8.4 million ounces. Support and resistance are at $985 and $1,014 respectively today.

The recent rally in silver prices attracted sustained physical market selling interest in Asia. With the base metals also coming under pressure however, and with concerns over the pace of the economic recovery coming back to the fore, silver has since
come under fairly heavy pressure.

The metal fell from $17 to $16.23 in NY trade yesterday before a slump in Asian equity markets this morning, saw silver slip further to $16.06 in Asian trade.

Of note, the gold:silver ratio has increased from 59.70, in NY trade yesterday, to 61.95 this morning - signaling silver has decoupled from gold in overnight trade.

Reduced global risk appetite has pressured the PGMs this morning. Platinum fell from $1,330, in NY trade yesterday, to $1,285 in Asian trade this morning. The metal has since recovered slightly heading into this afternoon, however the metal is lacking direction and has resorted to trading sideways heading into the afternoon.

Palladium is also range-trading between $290 and $294.

Looking ahead, this afternoon’s raft of US economic data, including the Durable Goods Orders for August, University of Michigan Confidence and The August New Home Sales numbers will likely dictate price direction this afternoon.

Courtesy: Commodities Research, Standard Bank