From GoldMoney manage desktop–
The price of gold jumped on Thursday afternoon of this week’s high of $ 1,392/oz falling back 20 dollars. Worse than expected weekly Us jobs data knocked dollar which released some pressure from the price of gold, but they are not maintained.
After the dollar’s slip gold started to flounder when European bond sales in Portugal, Spain and Italy were met with strong demand. This reduces the burden on the European one and ate away at earlier gains in the price of gold as a safe haven appeal has declined.
GFMS, respected precious metals in the consulting firm, released its gold exploration 2010 update on Thursday. The report envisaged that gold can reach $ 1600/oz at the end of this year or early next year. Of note was to confirm that the official sector (which includes NCBs) moved into the net acquisition of last year. This is the first time this has happened since 1988, the largest contributor to this figure as a central bank buys from the new countries.
Philip Klapwijk, Chairman of GFMS hinted that the European debt crisis could spread to the Americas, which would massively increase gold demand from safe haven buying. Refer to the U.S. national debt, he said: “I think that it ever could start questioning its triple-A bond rating.
Silver reached $ 29.76/oz on Thursday but soon fell under $ 29 as gold began to fall. Last year silver suffered steady demand from the industrial sector and from investments, which helped it surpass gold by share gains. This dual usage for silver may increase volatility in comparison with the price of gold, but analysts believe in long term silver could benefit from this diversity.
Platinum and palladium also rose this week when a fluctuating dollar along with optimism in the automobile industry, PGMs a boost. Platinum rose to $ 1,826/oz, its highest for about 2 ½ years and palladium reached a high of $ 821/oz 10 years.
All data and quotes obtained from Reuters.