The precious metals moved in tandem with the dollar

The precious metals moved in tandem with the dollar on Wednesday, however this morning has seen the likes of gold and silver rally, in spite of a stronger dollar, or rather euro weakness. Concerns over sovereign debt issues in Europe, and Ireland in particular, appear to be shielding gold with safe-haven buying activity propping it up and seeing it temporarily detach from its
previously strong link to the dollar.

With the Indian market returning to work tomorrow, after the week’s celebrations, we may see some renewed buying interest in the physical market. As we highlighted earlier this week, the Indian wedding season lies ahead, and with the general feeling among Indian buyers being that prices will continue to climb, we could still see significant physical demand, even at these elevated levels.

Gold support is at $1,391 and $1,374. Resistance is at $1,418 and $1,427.

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