January platinum closed at its highest level since December 6th at $1730.90.  A move above the December 6th high of $1737.50 would present January platinum with little resistance until the $1750 level.  Reports of a sharp jump in Chinese platinum imports probably provided the market with its recent lift.  In terms of a physical commodity a weaker dollar and positive U.S. data could sustain the recent gains.

Jan platinum $1,730.90, up $9.00; Range $1,720.00-$1,735.40

Mar palladium $755.15, up $2.10; Range $751.15-$760.25

Feb gold $1,387.40, down $1.40; Range $1,385.40-$1,391.70

Mar silver $29.385, down 0.9 cents; Range $29.230-$29.485

The Treasury notes and bonds continue to slide while January platinum settled within its consolidation range between $1628 and $1733.  We have been expecting a choppy, sideways trade and for the past month we got it.  With gold looking saggy along with higher Treasury yields the choppy consolidation should continue barring a currency and debt crisis or a sudden shooting war somewhere. 

We’re on the sidelines waiting for lower prices.

Jan platinum $1,704.40, down $9.50; Range $1,690.00-$1,711.40

Mar palladium $752.65, down $15.55; Range $741.10-$763.05

Feb gold $1,386.20, down $18.10; Range $1,382.30-$1,398.00

Mar silver $29.253, down 5.35 cents; Range $28.925-$29.645

The Wall Street Journal on the implications of higher Treasury yields.

Bond Bubble Bursting

"Investors need to understand that there is now a serious danger that the events of the last month are the start of a long-term slump in Treasurys. That makes this investment environment more dangerous than many people seem to realize."

Thirty and ten year Treasury futures were each down more than a full basis point today. The downward trend is firmly established and confirmed again and again. Sooner or later higher interest rates are going to effect commodities investment including platinum, silver and gold.

January platinum couldn’t even follow gold and silver up beyond short term resistance at $1730. But it followed them down in the latter half of the session settling for the day down $8.40 at $1705.20. If the gold and silver rally peters out January platinum could be at $1660 in no time.

That’s a big if at this point although gold and silver could not maintain their record high levels today. But the platinum chart does not look encouraging for would be bulls. A bearish perfect storm for platinum would be higher yields, a stronger dollar and sagging gold prices. Right now we’re at one out of three—higher yields. Gold and especially silver still look strong and the dollar is hanging by an invisible thread. One could still buy platinum based on the strength of gold. I am waiting for a steeper correction.

Jan platinum $1,705.20, down $8.40; Range $1,698.1-$1,734.0
Mar palladium $738.70, down $12.70; Range $722.15-$775.00
Feb gold $1,409.00, down $7.10; Range $1,403.00-$1,432.50
Mar silver $29.777, up .042 cents; Range $29.575-$30.750

Gold is approaching its all time high while silver made another 30 year high.  So what’s with platinum?  January platinum settled down $14.90 on the day at $1713.60.  It hasn’t closed above the $1730 level since November 10.  Since then it has been crunch time for platinum.  Either it is going to follow gold and silver higher or higher interest rates and a stronger dollar are going to pull gold and silver down a bit.  In the mean time platinum is still the laggard of the precious metals. 

We’ll be watching the ten year and thirty year Treasuries. If the downward price trend continues there will come a tipping point vis-à-vis the precious metals.  The higher interest rates will attract investment capital out of commodities.  That’s a long term development.  For the short term the PMs are hot.  Gold is too close to an all time high to buy it. Ditto silver. Platinum is lagging though.  I am waiting for a more substantial correction but risk tolerant players could buy platinum at these levels and feel good about it.

Jan platinum $1,713.60, down $14.90; Range $1,711.40-$1,737.50

Mar palladium $751.40, down $18.70; Range $751.00-$767.05

Feb gold $1,416.10, up $9.90; Range $1,409.80-$1,422.40

Mar silver $29.705, up 46.4 cents; Range $29.495-$30.160

January platinum settled $29.10 higher today at $1713.10.  The high of the day was $1729.90, keeping the session within the projected consolidation range of $1628 to $1730.  The $1730 level could be pierced with a close any day now but the lack of enthusiasm in gold keeps me cautious.  

Yields on the long end or the Treasury curve continue to rise making the interest-less precious metals less attractive.  It may take some time for higher interest rates to make themselves felt in the commodity spectrum but Treasury prices are indeed sinking, raising rates.

Jan platinum $1,713.10, up $29.10; Range $1,682.00-$1,729.90

Mar palladium $763.70, up $31.40; Range $731.70-$773.90

Feb gold $1,389.30, up $1; Range $1,385.10-$1,399.70

Mar silver $28.572, up 15.9 cents; Range $28.330-$29.080

January platinum climbed back to it’s highest level since November 22nd to settle at 1684.00.  A nice rally on the coattails of gold and silver but still a long way from the November 9th high of $1809.80 and the April 26th high of 1760.40.  Until the April high is breached again I remain skeptical of higher platinum prices.  The next short term resistance level is $1730 with support at $1628.

Jan platinum $1,684.00, up $17.60; Range $1,658.40-$1,692.30

Mar palladium $732.30, up $29.30; Range $712.05-$738.00

Feb gold $1,388.30, up $2.20; Range $1,383.00-$1,398.30

Mar silver $28.413, up 20.1 cents; Range $28.020-$28.880