Concerns that Europe’s sovereign debt problems may worsen, continue to drive precious metals markets

Concerns that Europe’s sovereign debt problems may worsen, continue to drive precious metals markets. Despite a statement of support for Eurozone bonds from China and Japan, treasury yields and CDS spreads continue to climb across Europe, while gold has rallied back above $1,380/oz heading into the afternoon. With Portugal coming to the bond market tomorrow and Spain the next day, we expect the associated concerns and uncertainty to keep precious metals well supported.

Gold support is at $1,369 and $1,362. Resistance is at $1,384.