Speculators and investors have the precious metals market in their tight grip and are just forcing prices higher.

With the way the precious metals and the oil continue to soar, I think the market may be just a bit worried that the Fed may signal it indeed has a little bit of work left to do.

The rand, as a commodity-based currency, should benefit from the surge in precious metals' prices as it has in recent times.

However, the market may be prone to wide trading ranges and choppy price movements while current consolidation continues, with more liquidation possible in the absence of upside momentum.

The market remains fund-driven. No one wants to go short while consumers buy in dips and producers are reluctant to sell, hoping for yet higher prices.

Once prices retreated toward $ 70, we saw the speculators come back in.