Russia Accumulates Gold As Consolidates Below Resistance At $1,644/oz

Tuesday, August 21, 2012
By Paul Martin

GoldCore
GoldSeek.com
Tuesday, 21 August 2012

Gold continues to be supported by the real risk of EMU break up and further weakness in the euro, dollar and other currencies. Gold continues to consolidate below its 200 day moving average at $1,644/oz.

Technically, gold needs to close above the 200 DMA. Should this happen we could see quite significant short covering and more speculative elements on the COMEX may sense blood and come in on the long side in a more aggressive manner thereby propelling gold well above its recent trading range.

Platinum hovered just above the 2 month high hit on Monday over supply concerns from South Africa. Lonmin is the world’s number three producer and accounts for 12% of global platinum output. Industrial unrest has spread to other platinum mines in South Africa which produces between 70% and 85% of the world’s platinum (different estimates).

44 people died after violence and a massacre at Lonmin’s Marikana mine, and the company is now waiting before firing the 3,000 workers as previously planned, as the mine owners realized it would escalate the situation.

Gold bullion prices inched up despite trading volume for US gold futures being on track to hit a 2012 low. Silver surged almost 3% and there was speculation that platinum’s rally may have made some of the silver shorts close some of their massive concentrated short positions.

Platinum has surged 7% in the last 3 sessions bringing its year to date gain to 7% outperforming gold and silver so far in 2012.

Russia continues to accumulate gold in its large foreign exchange reserves. The reserves include monetary gold, special drawing rights, reserve position at the IMF and foreign exchange.

Russia’s central bank increased its gold holdings to 30.1 million troy ounces as of August 1st, from 29.5 million troy ounces a month earlier, according to a statement published on its website today.

The Rest…HERE

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