On Friday the metal staged a rally with London gold PM Fix at $1,664 an ounce, up from the previous day's $1,636/oz. The yellow metal has regained its premium to platinum. Silver moved unlike gold with Friday AM Fix of $31.54/oz versus previous day's $31.79/oz.
The entire precious metals complex looks vulnerable in the near-term. For gold, physical demand has remained muted despite price declines. The expected support or a solid floor from physical demand has failed to materialize.
Fortunately physically- backed ETPs have held well with holdings at a record 2,445 tonnes, and gold coin sales in the US are reported to be healthy. However, on the Comex while non-commercial positions were reduced on the back of long liquidation, fresh short positions have been established.
