Article about gold and platinum with a chart.

Gold/Platinum Ratio

January platinum had its technical bounce to $1678.00.  Now it is set to retest the recent low at $1628.  It is very significant that it traded above the April 2010 high at $1760 for only a few sessions before fading below it again.  It means that the long term bullish prospects have been put on hold, for how long remains to be seen.

I’m expecting a bearish wave to wash over the precious metals.  It may not be too deep as far as prices go but the length of time could be considerable.  Platinum could well repeat its recent May through September L shaped consolidation.  Unless firm buying comes into gold and silver right about here and now, the bulls are checked.  Look for lower prices in a choppy trade.

Jan platinum $1,655.50, down $15.60; Range $1,649.30-$1,678.00

Dec palladium $684.70, down $19.00; Range $679.05-$715.00

Dec gold $1,357.80, up $5.50; Range $1,347.90-$1,364.80

Dec silver $27.461, up 28.2 cents; Range $27.075-$27.895

January platinum closed Tuesday afternoon trading sharply lower at $1644.90 down $40.90.  The S&P, crude oil, and a host of other commodities are sinking in tandem with copper and the precious metals.  The new development in all this is higher Treasury yields, which make the U.S. dollar more attractive.  If Treasury prices continue lower the precious metals could be in for a steeper correction than they already demonstrated. 

The momentum is down. There is no sudden wave of buying on its way in.  Even economic crises on the horizon have become routine and blasé.  The Chinese government is going to continue beating the anti-inflation drum.

The next support levels for January platinum are $1620 and $1609.

Jan platinum $1,645.70, down $40.10; Range $1,638.10-$1,679.00

Dec palladium $645.90, down $35.40; Range $636.00-$678.75

Dec gold $1,338.40, down $30.10; Range $1,329.00-$1,364.30

Dec silver $25.233, down 85.9 cents; Range $24.980-$25.850 

Dec copper $3.7275, down 19.75 cents; Range $3.6855-3.9325

 

I was looking for a technical bounce after Friday’s plunge. January platinum closed the Monday afternoon session close to the day’s low at $1675.80 down $8.80.  Get ready for a test of support at $1660 and $1640.  The value buyers had to present their case right away and they didn’t.  There will be a period of sideways to downish choppiness. The dollar looks set to rally further. Even another debt crisis in Europe may not bring the precious metals to life right away.  The bull has been wounded and needs some time to recover.

Jan platinum $1,685.80, up $1.20; Range $1,671.00-$1,697.90

Dec palladium $681.30, down $7.65; Range $664.50-$689.40

Dec gold $1,368.50, up $3; Range $1,356.50-$1,376.60

Dec silver $26.092, up 15 cents; Range $25.475-$26.480

A brisk day for commodities across the board and platinum took it on the chin as well.  World governments are taking steps to curb inflation which worries commodities players. 

January platinum settled $61.20 lower at $1684.60, piercing key support levels at $1727 and $1700.  It is ready to re-test $1660 or even $1640.  My brain is telling me to wait and see what happens but my gut is telling me to buy for a short term bounce.

A physical buyer may want to risk buying here because it is such a significant dip.  We chicken hearted, low key traders would wait a few sessions to see if the bull trend resumes or if this is the beginning of precious metals Armageddon.  I like the idea of jumping in here with a small amount.  This commodities volatility event was just a bit too “newsy”, meaning that it was a reaction to external jawboning by government rumor mills.   

Friday afternoon trading in January platinum finally closed at $1684.00 down $61.80

Jan platinum $1,684.60, down $61.20; Range $1,672.50-$1,759.90

Dec palladium $673.65, down $30.50; Range $672.00-$709.80

Dec gold $1,365.50, down $37.80; Range $1,359.30-$1,410.00

Dec silver $25.942, down $1.463; Range $25.760-$27.690

There was a severe reversal in the precious metals during the post settlement afternoon continuation, especially in silver.  The dollar came roaring back and the metal bulls faltered. January platinum closed the session at 1763.70, down $7.40 on the day after making a high of $1811.80.  The PM complex is due for a correction if the dollar rallies.  

Jan platinum $1809.60, up $38.5; Range $1746.80-$1811.80
Dec palladium $742.65, up $31.75; Range $675.10-$743.50
Dec gold $1410.10, up $6.90; Range $1403.00-$1424.30
Dec silver $28.906, up $1.474; Range $27.530-$29.340

Gold, silver and palladium are flying right out of here while platinum stalls and consolidates.  New highs all around except for platinum.  Ho hum, the same old story.  January platinum settled today at $1771.10 up $2.20, above short term support at $1751.20 and $1743.50.  

Despite today’s technical bounce the fundamentals for the dollar are still weak making the precious metals continue higher.  The next hurdle for platinum is $1800.  When the fireworks start again $1800 could be blown through like a wisp of mist.  Consolidation followed by continuation is what we expect. An opportunity to buy is presenting itself. Take it.

Jan platinum $1,771.10, up $2.20; Range $1,751.20-$1,778.80
Dec palladium $710.90, up $25.50; Range $681.60-$713.95
Dec gold $1,403.20, up $5.50; Range $1,386.60-$1,407.20
Dec silver $27.432, up 68.4 cents; Range $26.515-$27.640

January platinum settled above its April 2010 settlement high today at $1768.90.  The question remains whether yesterday’s intraday high of $1799.50 was a buying climax, commonly called a blow off top.  I don’t think so.  With gold and silver making record high settlements, copper and crude oil rallying along with the stock market, this is only the beginning of platinum’s catch up phase.  Even palladium has blown the doors off of the lagging and lame platinum market.

Until now.        

Jan platinum $1,768.90, up $13.00; Range $1,743.5-$1,786.5
Dec Palladium $685.40, up $10.65; Range $669.35-$700.20
Dec gold $1,397.7, up $14.60; Range $1,371.90-$1398.7
Dec silver $26.748, up 70.5 cents; Range $25.875-$26.915

January platinum has broken through its April 2010 high of $1760.40 on the overnight continuation.  The high of the day is $1799.50 up $102.30 at this writing.  The next resistance level is $1850.  This is the explosive move we were expecting.  I thought we had more time but it always happens this way.  Suddenly, one day, up a hundred bucks. Buy any dips, even minor ones.  

January Platinum settled $58.70 higher today at $1755.90, faithfully following December gold’s lead, which settled $45.50 higher on the day.  A sharply lower dollar and a higher stock market are adding to the upward momentum.  A break out in crude oil favors platinum’s industrial demand component.  But it is investment demand in the form of inflationary expectations that is driving these gains. 

It could take a few days to fully factor in the QE2 readings.  Positive economic data and QE2 could make inflation loom large.  If you bought platinum in the $1700 range during the recent consolation be happy.         

Jan platinum $1,755.90, up $58.70; Range $1,705.10-$1,759.20

Dec palladium $674.75, up $32.05; Range $644.30-$678.00

Dec gold $1,383.31, up $45.50; Range $1,346.70-$1,384.80

Dec silver $26.043, up $1.607; Range $24.750-$26.100

Pay attention to this one.

Copper settlements: 

Dec $3.9120; up 12.70 cents; Range $3.8125-$3.9170

Mar $3.9240; up 12.65 cents; Range $3.8255-$3.9275