precious metals flash

Gold could not hold to the overnight gains and traded lower as USD showed strength. The support at $ 1725 was broken easily and more profit taking set the tone for the day. A bounce from the lows at the end of the day brought gold above $ 1720 again. Silver took a quick dive down to $ 33.00 but recovered nicely towards the end of the day. Silver and PGM`s are supported by the better economic outlook. Demand for gold out of India was picking up again, as prices in INR were down at 84 000 from 86 000 last week. More buying is expected, should gold move down to $ 1700.00. Greece has still not agreed to implement measures to reduce spending.