By Walter de Wet
Metals are succumbing to dollar strength — and dollar strength is being accompanied by increased risk aversion and weaker equities.
Earlier this week, we believed the bias lied towards a break above $1,145 for gold. But gold broke below $1,120 yesterday; therefore, we are turning cautious as dollar strength may spur more gold selling. On dollar strength and possible developments in the physical market, we advise caution in the weeks ahead (refer to Focus).
There was good physical demand as gold approached $1,100 this morning. But it might not be enough to offset gold selling elsewhere. Gold support is at $1,100 and $1,085, resistance at $1,120 and $1,130.
Trade sitting at the comfort of home. Start with a mere 50$
Although platinum and palladium are lower, both metals are seeing good buying on the dips. There may be temporary weakness and volatility, but we believe both are set to push higher. Palladium particularly is receiving good buying interest. Platinum support is at $1,600 and $1,580, resistance at $1,630. Palladium support is at $455 and resistance at $465.
