Precious Metals Set V-Bottom At Key Support Level

The precious metals have had a very choppy day, with the triggering of downside stops resulting in sharp falls in gold, silver, platinum and palladium. All of the metals have since stabilised and recovered, though palladium is the only metal actually trading higher on the day.

gold_silver_platinum_palladium_price_24_april_2014

gold, silver, platinum, palladium price on April 24th 2014

 

The PGMs remain dominated by the ongoing talks between South African miners and the AMCU. As a sign of the impact that the strikes are having on supply, Anglo American’s Amplats division reported a 39% y/y drop in production in Q1-14, with Amplats producing 357koz compared to 583koz in Q1-13.

Palladium meanwhile continues to garner support from further ETF inflows, with Palladium ETFs adding 52.9koz yesterday to reach a record 2.5Moz. Palladium prices have continued to push higher following the weakness seen at the beginning of the week, with prices climbing back above $790/oz.

Gold broke below key technical support at $1,276, with the picture still looking resolutely bearish. Silver is meanwhile also under pressure but is receiving some technical support around $18.90 and is recovering into the afternoon.
By Leon Westgate from Standard Bank

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