Gold Pushes Higher on World Bank China Growth Forecast

By: GoldCore

The long term trend line price of gold at $925, which has been steady since Monday, pushed higher today based on news that the World Bank has raised its growth forecast for China. The Chinese stock market rallied as did commodities across the board. Another main factor behind the return of bullish sentiment for gold is the euro.

In contrast to the US Treasury, the ECB has stated that it does not intend to cut interest rates further which has pushed the euro to 1.39444 and gold is holding firm. Furthermore, with risk aversion on the rise again as seen in falling stock markets, a rising VIX and widening credit spreads, gold looks well supported at these levels. Gold is currently trading at $941.

Silver:
Despite recent poor investor sentiment, silver has been a star performer over the past 2 days with physically backed ETFs adding 119 tonnes of metal to the inflow. This move has recovered some of the 9% losses that silver had incurred over the previous 2 sessions. This takes the ETFs holdings to over 10,840 tonnes, a new record high. Silver is currently trading at $14.30.

Platinum Group Metals:
Platinum is still seeing very decent inflows with 392kg turnover on the Shanghai Gold exchange overnight. Very good support for the group will be bolstered by news that the National Union of Mineworkers support industrial action by workers at Impala, a major platinum producer in South Africa. The fact that 90% of all platinum produced worldwide comes from South Africa means that the outcome of this industrial action will be closely monitored. Platinum is currently trading at $1,200

Bullion Services Team

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

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