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Gold Helped by Platinum Strengthby Peter A. Grant
Feb 06, AM 
Gold is modestly higher within the range, underpinned by firm platinum prices and resurrected concerns about Europe. The recent inability of the DJIA to sustain tests above 14,000 may also be driving a rotation back into safe haven assets such as gold.With the breach of important resistance at 1728.50/1734.00, platinum is trading at levels last seen in September of 2011. The white metals have indeed been leading the precious metals complex in recent months, spurred by hopes of an improving global economy and auto demand. Platinum has gotten an additional boost from South African supply concerns. Europe is being weighed by fresh political uncertainty, specifically in Spain and Italy, which threatens to unravel the relatively new found sense that the worst of the sovereign debt crisis is now behind it. The resulting wane in risk appetite is weighing on equities and underpinning gold. While Europe is presently in recession, there is a broad expectation that the ECB is still not going to offer easier policy tomorrow. The CBO announced yesterday that it expects the deficit for this fiscal year to be a mere $845 bln. It would be the first time in five years that the deficit wasn't in excess of $1 trillion. That's good news on the surface, but $845 bln is still a huge number and one data point does not a new trend make. The continued accumulation of massive amounts of debt, albeit perhaps at a slightly slower pace, will remain one of the primary driving forces in the gold market. A sustained rise above $1700 is still needed to get gold out of the recent range within the broader range. NEWSLETTER SIGN-UP Opinions expressed in commentary on the USAGOLD.com website do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any precious metals product, nor should they be viewed in any way as investment advice or advice to buy, sell or hold. USAGOLD, Inc. recommends the purchase of physical precious metals for asset preservation purposes, not speculation. Utilization of these opinions for speculative purposes is neither suggested nor advised. Commentary is strictly for educational purposes, and as such USAGOLD does not warrant or guarantee the accuracy, timeliness or completeness of the information found here.
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Wednesday February 6
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