By Leon Westgate
This morning has seen gold come under pressure, in line with the stronger dollar, though it remains within recent ranges and has is finding solid support with some participants looking to buy on dips.
The dollar strength is very much a function of the ongoing concerns over Greece, in particular whether the €45 billion rescue facility is a cure or merely a temporary analgesic helping make the symptoms more bearable.
Platinum and Palladium have come under a little pressure from the dollar this morning but are holding up pretty well, helped by yesterday’s solid economic data from the US and the decent Chinese numbers overnight.
Participants appear to be anticipating a pullback in the palladium price after yesterday's gains, with profit taking emerging. We note however, that should prices have another push higher this afternoon, shorts looking to cover back may exacerbate any rally.
With the fundamental picture still improving and likely tempting buyers on dips, we would expect a volatile couple of days as the market has a shake out.
Platinum support is around $1,690 with resistance coming in at $1,740 while palladium support emerges around $535.
