Silver has cracked the $24.00 level which yesterday was extremely solid. We now look to sell rallies to $24.20 and look for support towards $23.20. Likewise gold held $1460 yesterday and if that breaks we expect a sharp move with support $1420-1445.

Physical interest is starting to wane, with Asia out on holidays, and a degree of price elasticity coming in. Sure, gold was a bargain after a $200 fall – but not so much when it climbed within $40 of the level it broke down from. The market will look for further investor buying to re-establish the upside momentum but so far investors seem more worried about downside risks with puts still in demand over calls. Platinum has given up the $1500 level as the ZAR appreciates and global growth concerns continue. The Canadian Dollar broke the 0.9900 cent level, a close below 1.0050 could see C$ rise above Par once again. The Euro cracked the 1.3200/USD level with the ECB meeting coming Thursday. If they cut rates the Euro can give back some of the recent gains.

 

Note-movements based on previous days closing market prices.

 

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