precious metals flash

The positive risk mood following the Greek deal, drove precious metals higher throughout the day yesterday. It needed two waves of more than 1 Mio. ounces in a 10 minute frame to take out the 1750 USD level in Gold, one right at the Comex open in New York and one right after the pm fixing. The star however is Platinum, which knocked out the 1700 USD level this morning in Asia and traded up to 1705. 100 USD higher than last Thursday, or 22% up since the beginning of the year. It will be interesting to see Friday’s Commitment of Traders Report whether most shorts have been squeezed out now. The South African National Union of Mineworkers advised Impala’s workers to re-apply for their jobs today, which might take some drive out of the recent price support and see some happy longs take profits. Technically Gold had a strong close versus USD, CNY or INR, as resistance trend lines going back to September 2011 were broken. Next resistance should be the recent 1665 high on the future followed by a psychological 1675 level. 1645 might be the level to hold for the moment in order to keep recent longs in the game.