The price of gold fell sharply on Tuesday afternoon after hitting a high of $ 1,430/oz Gold decreased to $ 1,371 on Wednesday that a stronger dollar weighed on the precious metals of all time. Earlier this week president Obama announced a plan for further tax cuts in the United States, which had the influence to improve the prospects for the economy and helped strengthen the dollar against a basket of currencies.
European debt woes is in any way out of the picture and safe-haven buying on teats helped take the gold back from its recent lows. On Friday, was the gold price up to around $ 1,390/oz; a trader Singapore based told Reuters: Gold appears to be to find a base for the last two days large sell-off. Physical demand should be the key to support at these levels. with downside critical support at $ 1,371. ”
At this time of year are other factors that are added to the market just as the end of the year winner. When it comes to the end of the year, traders try to position themselves correctly for year-end statements and even years to come. Factors expected to affect the gold price next year include further dollar weakness after the latest economic stimulus measures begin to fade.
Silver also had a dramatic reduction of this week, after reaching $ 30.68 on Tuesday afternoon it fell to $ 27.96 just over 24 hours later. Silver suffered from the same factors as gold this week and the recovery has only taken the $ 28.80 and far from the 30-year above $ 10 from the previous week.
Platinum fell to $ 1,663/oz on Wednesday while palladium fell from $ 770 $ 710. Platinum/silver ratio and palladium/silver ratio is not as widely seen as the gold/silver ratio but analysts believe that examine these numbers can point to Platinum and palladium are undervalued. Both the platinum group metals are currently about half of its 10-year relationship with silver. The above figures suggest, say analysts, that a good purchase for 2011 may be Platinum or palladium. Jonathan Barratt, Managing Director, commodity brokerage services told Reuters: “Platinum seems to be the absolute poor cousin. If you are looking to pick up a metallic, download Platinum as the cheaper option. Sell silver … and buying platinum “.
All data and quotes obtained from Reuters.