Keep An Eye On Platinum

Precious metals firmed up yesterday, but considering that the Euro jumped from the low 1.09s to the high 1.11s, the move higher in our market was not very impressive.  Dovish comments from FOMC members and the ongoing issues with Greece and their debt payments provided the support. This morning finds precious metals lower across the board as we continue to look for direction. Despite sluggish economic data continuing this week, interest rates are moving higher which is likely weighing on our market. 

The yield on the 10-year U.S. bond has jumped over 3 percent this morning.  The yield, which was moving lower just a few days ago, is now at 2.33 percent and follows a global sell-off in bonds which began yesterday. Support for gold and silver continues to be found in the low $1,180.00s and at $16.50 where we continue to see a sharp increase in physical demand.  That same physical demand slows down considerably as we probe either side of $1,200.00 gold and above $17.00 on silver.  Keep an eye on platinum as it is trading at an $80.00 discount to gold and could be a “good buy”.