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