Gold did well to hold its $1,278 support level yesterday as traders tried a few times to break the line. The bounce is a normal pattern, after the severe retracement of the last few days. There was some indication of renewed Chinese demand overnight and the virulence of the support line yesterday initiated short covering and bargain buyers. We are, however, now at the $1,292 level discussed yesterday as the first resistance line and a break should see out test of $1,300. The $1,302 will need to be taken out for the technical's to begin to show confirmation. For now, the $1,278-$1,300 remains the range. The PGMs continue to attract interest, with platinum now trading at a $140 premium to gold, from $100 a few days back and rhodium has quietly added $ 100 in the past week.
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