Gold's Next Move Will Come from Inflation Figures

Source:

"Gold will have to settle above $960.00/oz for it to test its previous high of $1,033.00/oz. . ."

Gold: Gold failed to settle above $960.0/oz yesterday despite the EUR/USD breaking its previous high and touching 1.4445. Gold will have to settle above $960.00/oz for it to test its previous high of $1,033.00/oz but a lackluster performance over the last few trading days suggests it is having difficulty.

Direction today will come in the form of inflation figures out of Europe and the U.S., and the closely watched U.S. Home Sales. If gold does break through $960.00/oz, the next resistance will be $981.00/oz. Failing that, we will revert to the current range of $905 - $960/oz.

Silver: Silver continues to look to gold for direction with near-term support and resistance at $14.09/oz and $14.48/oz, respectively.

Platinum group metals: Despite an agreement in South Africa on Friday, negotiations remain ongoing within the PGM sector. Good news for the PGMs came yesterday in the form of higher-than-expected U.S. July auto sales. This coupled with soundings from the manufacturers that they intend to increase depleted inventory, leaves platinum trading at $1,223.00/oz and rhodium at $1,650.00/oz.

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