Global equities and commodities have rallied due to increased risk appetite despite real lingering risks. Gold has gained for the first time in four days in global markets and some investors continue to diversify into the safe haven on concern that Europe's sovereign debt and fiscal crisis isn't over. Hopes for a continuation of the recent global economic rebound are high and have seen oil, copper and most commodity prices rise this week and equities stabilise. Gold is currently trading at $1,220/oz and in Euro, GBP, CHF, and JPY terms, gold is trading at €1,008/oz, £832/oz, CHF 1,393/oz, JPY 111,709/oz respectively. Gold is marginally higher on the week so far this morning. A higher weekly close this week would be very bullish as it would follow last week's higher close and the month of May's higher close. The bears will be trying to paint the tape and keep prices lower on the week thereby manipulating the technicals and momentum traders into sellers. However, even a lower weekly close would not be disastrous as all of gold's moving averages (the 50, 100 and 200 DMA) are all rising and the MACD has crossed over which is also bullish technically. A close above $1,250/oz and the recent record (nominal) high at $1,252/oz could see us rapidly rise to $1,300/oz. However we are now in the period of seasonal weakness for gold and gold may need some back filling and consolidation during the "summer doldrums". The traditionally quieter summer months of June and July when international jewellery demand declines and participants take holidays and volumes generally decline. However, this pattern does not always hold and those waiting to "time the market" might again get their fingers burnt as they have done in recent years. Support is at $1,195/oz and $1,165/oz. Sovereign debt and banking system risk remains elevated and this will support gold for the foreseeable future. Hungary's debt auction failed to reach its target and Hungary sold its bills at higher yields than two weeks ago as markets remain uncertain and awaiting proof that the government's economic plan could be implemented. The bills were sold at higher yields than those of two weeks ago, before the market turmoil last week caused by the government's mixed messages about the state of Hungary's public finances. Concerns that Hungary may be close to a Greek-style debt crisis remain and there are growing concerns about sovereign debt issues and banks exposure to Bulgaria. Not to mention, European banking shares indicate a Greek debt default may be just a matter of time. The European banking system remains stressed as seen in the ECB extending the emergency liquidity it is pumping into the eurozone financial system. Also, euribor has risen above euro Libor with European interbank lending rates diverging to their worst levels since they were launched in December 1998. Silver Silver is currently trading at $18.30/oz, €15.11/oz and £12.47/oz. Platinum Group Metals Platinum is trading at $1,545/oz and palladium is currently trading at $455/oz. While rhodium is at $2,425/oz. Platinum and palladium appear to be consolidating after their recent sharp falls and investors are tentatively dipping their toes back in.

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