precious metal

China has become the key gold producer and consumer and silver exporter, as well as world’s biggest consumer of platinum and palladium jewelry. The opening Chinese precious metals market would face a brighter future. The precious metals have enjoyed mixed fortunes during the first half of February, although on balance there have been gains across the sector (except palladium) and sentiment is mixed. The gold market is also starting to become slightly nervous about large speculative holdings (notably the net speculative long position on COMEX) and although sentiment is positive for the medium term, a period of consolidation, or possibly even a small retreat, may be called for. Silver, by contrast, is starting to attract speculative attention on dips towards the $13.70 level. The fundamentals do not really support this price level, but speculators appear to have turned their attention to silver and there is the possibility of fresh strength. Platinum prices have been benefiting from the strength in gold and from supply concerns as a result of the problems at Lonmin, Anglo Platinum Ltd and now Impala, although there has not been much borrowing in the market, sentiment is reasonably constructive and the resistance at $1,200 has been overcome. Palladium has been held into a narrow trading band centred on $335 - $340, but while this may appear somewhat pedestrian the market has been quite active.