Gold Benefits from PIMCO and Buffet Dollar Warning
Source: Market Oracle, GoldCore (8/20/09)
"PIMCO bond fund and Warren Buffet warned yesterday regarding risks posed to the dollar. . ."
PIMCO said that the dollar's reserve currency status was not guaranteed and Buffett warned regarding inflation and warned that the "gusher of federal money" threatened the dollar. Gold remains in a tight range and testing $960/oz, yet again, would be significant in the short term. However, there is still the possibility of a further move to the downside towards initial support of $925/oz. Below that, $905/oz is the next support but there should be plenty of interest at these levels with buyers looking for a basing point to enter and profit from the next leg up in the secular bull market. Gold is currently $944/oz.
Silver was stronger overnight and has moved back above $14.00/oz. It may still be vulnerable and a move to $13.00/oz could happen in the short term prior to re-challenging $15.00/oz. Silver is currently $14.01/oz.
Platinum Group Metals
Platinum is still finding good support from the market, particularly in light of the wage negotiations at the Impala mine are still unsettled. It is currently trading at $1,243/oz. Palladium is trading at $274/oz and rhodium at $1,600/oz.