Precious metals prices opened mixed on Tuesday with gold and silver retreating a bit while platinum and palladium staged advances. Spot gold was quoted at $1,791 per ounce, down about $5 while silver fell 15 cents to the $34.bid level per ounce.
Gold bullion continued to trade in a range bound fashion around $1,758 per ounce - 8.3% above where it started October - following the release of US nonfarm payroll data, which showed the US economy added 80,000 jobs last month.
Whipsaws in both the precious metals and equities markets are difficult to forecast and trade for most investors. However, gold has been moving in defined Fibonacci and wave patterns for ten years now, and has about three years left in a 13-year bull.
Last week's "winning" mood among equity and commodity bulls, which was stoked by the statements coming after the EU summit, sustained serious damage over the past 24 hours. Players have begun to recognize that words do not equate action.
I found the group amazingly well informed, with a majority holding undergraduate and graduate degrees. Almost everyone could accurately describe the Glass-Steagall Act of 1933, which separates investment and commercial banking functions.
Over the past month, gold and silver have remained in a trading range. Gold and silver never really lost their safe-haven status per se, but traders were not treating the metals as such. Gold and silver were caught in the tide with equities.
Nissan has achieved cost reduction of one-sixth by slashing the usage of platinum. While this may pose threat to platinum producers, in reality fuel car cells could help to relieve the long-term problem of short supply of platinum.
Gold opened with a gain of $25 at $1,688 the ounce and silver started the midweek session off with a three-quarter dollar rise to the $32.89 level. But the big gainer on the day was platinum, which showed a $30 lift to $1,544.
People are always throwing around the fact that gold is "rare". While that's absolutely true, most people don't have a clue as to what that really means. Even more important to understand is that the gold supply is growing at less than 2% per year.
Prices to buy gold remained volatile in Asian and London trade , holding within $20 per ounce of last week's finish - some 7% above Monday's two-month low - as this week's strong rally in global stock markets faded and commodities also eased back.