Gold prices started Monday’s trading session on a relatively steady note, with gold making a small, $1.30 advance on the tickers, and opening at $1135.70 per troy ounce. The weekend was rather bereft of major Greek-related news, save for the absence of any overt German or EU commitments to Prime Minister Papandreou. French President Sarkozy, on the other hand, pledged that the euro region stands ready to rescue Greece if the need arises. What he knows that his official friends in Berlin, Frankfurt, or Brussels, are reluctant to make public, remains an open question at this time.
In any case, the US dollar originally sank more than about half a percent against the euro as the common currency found a modicum of support following Monsieur Sarkozy’s indications that the Greek ship won’t be allowed to slip beneath the waters. The opening minutes had the euro trading up near 1.3673 against the greenback, and the latter at 80.26 on the trade-weighted index (off by 0.16). Against that mildly bullish backdrop, silver bullion opened with a 6-cent gain, quoted at $17.43 the ounce. Platinum racked up major gains at the open, adding $26 to Friday’s closing values and reaching $1603.00 per troy ounce.
Palladium fans watched their favorite metal open unchanged at $476.00 while rhodium’s followers were greeted with a $2400.00 per ounce bid price early this morning. Newly appointed Kitco News Editor-in-Chief Terry Wooten reports from the PDAC in Toronto that CPM Group New York’s managing director Jeffrey Christian opines that: “platinum group metals remain attractive investments because of their duality and the continued demand for automobiles in China and India. The platinum group metals not only have investment qualities, he said, but are “industrial metals in tight supply.”
Mr. Christian added that: “Most automobiles sold all over the world now require catalytic converters to curb pollution, boosting the attractiveness of the metals.
The precious metals complex slipped somewhat lower as the morning wore on, with gold falling more than $12.50 per ounce to a low of $1121.70 per ounce, despite the dollar making no fresh gains on the boards (it actually slipped by about 0.04) and the euro only easing a tad, to 1.364 at last check. Silver prices followed suit, dropping 6 cents to $17.31 and palladium fell $4 to $472.00 per ounce, however platinum hung on to about an $11 gain (trading near $1588) as of 9:30 New York time this morning. Maintenance of the $1120.00 price level in gold might turn out to be today’s priority for gold as its recent uptrend has thus far not been able to overcome last week’s $1146 high and aim towards the key $1162.50 January high.
Jon Nadler, Senior Analyst for Kitco Metals Inc.
North America US & Canada