By Walter de Wet Gold was buoyant yesterday, as; once again, concerns over Europe’s spreading debt crisis and the attendant risk aversion saw investors opt for gold. However, there’s been some profit-taking above $1,225 today, and possibly some selling to cover margin calls elsewhere. As US markets open this afternoon, gold may struggle for further upside if equities slide (as they have in Asia and Europe). However, we would view such dips as buying opportunities (especially in euro terms), since over the medium term, risk aversion is expected to keep gold relatively well bid. Gold support is at $1,213 and $1,205, resistance at $1,226 and $1,231. The correction of platinum and palladium prices, after last week’s rally, continues — although slower. The announcement of the Japanese Prime Minister’s resignation has dampened hopes for a strong Japanese economy. This, together with concerns over the Euro zone’s growth prospects and speculation that China could cool growth, could have added to the pressure on PGM prices. As we’d expected, palladium losses have been more severe than platinum losses. With a large amount of speculative long positions still present in the palladium market, this trend could continue. Platinum support is at $1,530 and $1,500, resistance at $1,579. Palladium support is at $443 and $4, 25, resistance at $475. Silver movements, overnight and this morning, have mirrored those of gold. Should US equities perform poorly today, silver could experience more pressure. Silver support is at $18.21 and 18.03, resistance at $18.58 and $18.78.

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