February gold is now trading well below its three-month support level. This will inevitably affect platinum and palladium prices. Today April platinum settled at $1803.50, up $6.60 but it won’t last. Even though platinum has plenty of technical support before hitting its Maginot line at $1640, the established downtrend in gold should prove too heavy a counterweight.

Wait for a good buy day at lower prices.

Apr platinum $1,803.50, up $6.60; Range $1,781.40-$1,819.40

Mar palladium $813.50, up $8.90; Range $802.05-$819.00

Feb gold $1,318.40, down $14.60; Range $1,315.70-1,347.50

Mar silver $27.031, down 97 cents; Range $26.775-27.795

The weakness in gold and silver finally caught up with the platinum market today.  April platinum settled $32.30 lower at $1787.30, just on the verge of negating the $177 triangle chart pattern formed in the last two months.  Investment fund demand has softened for precious metals in favor of other things. 

While April platinum is still in breakout territory it is hard to imagine that gold and silver won’t drag it down further still.  I would say the party is over for the bulls.  In fact it was over when February gold broke below $1350.  While the technical damage in platinum is still salvageable, the gold chart points to lower prices ahead.  That means platinum and palladium too.

Apr platinum $1,787.30, down $32.30; Range $1,781.10-$1,820.70

Mar palladium $784.75, down $31.80; Range $776.25-$810.00

Feb gold $1,332.30, down $12.20; Range $1,321.90-$1,338.00

Mar silver $26.805, down 51.6 cents; Range $26.540-$27.035

April platinum is still trading in breakout territory above its support despite the prevailing weakness in gold and silver. Platinum has to cross the next resistance hurdle at $1851 to keep the bullish momentum alive. A retest of support at $1785 wouldn’t be surprising either.

Platinum and palladium are trading higher off of dollar weakness and their own demand fundamentals. Gold and silver should drag the noble metals down with them. I’m leaning toward lower platinum prices based on gold weakness but the market is still technically and fundamentally strong.

Platinum is heading for $1950 based on a $177 dollar triangle chart pattern. The breakout point was $1787, making the target $1964.

Apr platinum $1,822.30, up $3.70; Range $1,805.30-$1,832.80

Mar palladium $816.75, up 90 cents; Range $803.00-$824.00

Feb gold $1,341.00, down $5.50; Range $1,337.00-$1,349.70

Mar silver $27.427, down 4.6 cents; Range $27.080-$27.630

Gold and silver closed below their support but April platinum, while also down on the day, closed above its support at $1813 and $1793 to settle at $1818.60, down $19.50.  It could have been worse.  The low of the day was $1800.60 or $37.50 lower.  A technical bounce isn’t a rally.  Platinum held up nicely under pressure from the metals sector but if gold and silver continue to weaken, platinum and palladium will follow suit. 

This is the turning point for gold and silver that I have been expecting since the December high in gold.  The correction is at hand. 

Apr platinum $1,818.60, down $19.50; Range $1,800.60-$1,842.40

Mar palladium $815.85, down $3.90; Range $795.00-$818.85

Feb gold $1,346.50, down $23.70; Range $1,342.40-$1,370.90

Mar silver $27.473, down $1.328; Range $27.375-$28.780

April platinum lunged for a high of the day of  $1851.10 before settling at $1838.10, $13 off of the high.  Platinum should break through the thin resistance at $1850 any day now.  Auto catalyst demand is still as strong as ever and will probably remain so in the intermediate term.  That means higher platinum and palladium prices.

The dollar index broke its support but it didn’t seem to help gold very much.  February gold is holding its support though.  I’ve been concerned about gold and silver weakness spilling over into platinum.  So far I’ve been proven wrong.  It’s been a sideways, choppy trade for gold and silver and a huge $141 range for the month of January in platinum, from $1710 to $1851 and climbing.

If January platinum breaks through the $1850 resistance the next stop would be $1950. 

Apr platinum $1,838.10, up $9.80; Range $1,824.10-$1,851.10

Mar palladium $819.75, up $9.30; Range $811.65-$829.85

Feb gold $1,370.20, up $2.00; Range $1,365.50-$1,378.90

Mar silver $28.801, down 11.1 cents; Range $28.725-$29.490

Platinum put in its highest close since August of 2008. That looks bullish as all hell, yes indeed. Palladium is very strong also. But with gold not able to rally out of its droopy consolidation, I’m a bit wary of platinum flying higher still without the flagship precious metal, gold, right behind it.

The big question is which is going to break harder and faster, the dollar index or gold? The dollar has been hanging on to its support by a thread while gold is trading slightly beneath its support. The whole world, including me, is expecting a deeper correction in the gold market. It hasn’t taken platinum with it so far. The tape doesn’t lie. Platinum taken in isolation is ready for a power rally through $1850 and beyond.

Apr platinum $1,828.30, up $12.30; Range $1,803.20-$1,832.30

Mar palladium $810.45, up $19.95; Range $782.50-$813.10

Feb gold $1,368.20, up $7.70; Range $1,356.80-$1,376.00

Mar silver $28.912, up 59.2 cents; Range $28.050-$29.080

The dollar index plunged, gold and silver stayed the same, while platinum and palladium soared.  Platinum was the laggard of the precious metals and is now making its long anticipated catch up move.  April platinum settled $20.10 higher at $1821.20, taking out the November 9 high after a $93 three-day range.  All this is very bullish, of course.

Can platinum trend upward while gold is trending down?  It isn’t happening yet but historically, yes, it could.  It’s an anomaly, though.  It can’t be counted on.  Platinum is usually the leader or the laggard.  Right now it is leading.     

Apr platinum $1,821.20, up $20.10; Range $1,794.50-$1,833.00

Mar palladium $813.45, up $6.70; Range $805.00-$825.10

Feb gold $1,387.00, up $1.20; Range $1,377.20-$1,392.90

Mar silver $29.263, down 28.2 cents; Range $28.900-$29.810

It seems platinum has decoupled from gold and is now trading as an industrial metal following the S&P skyward.  April platinum settled $30.80 higher at $1801.10, taking out the January 3 high and putting in a $70 two-day range.  Gold and silver are still in the consolidation doldrums while palladium and platinum are gunning for new highs.  Optimism about automobile-catalyst demand coupled with strong demand from exchange-traded funds has continued to tighten the markets for the platinum group metals.

The next resistance levels for April platinum are $1813 then $1850.  I’m still cautious because gold is trailing the platinum group metals so heavily but the chart picture is extremely bullish.

Apr platinum $1,801.10, up $30.80; Range $1,764.60-$1,809.90

Mar palladium $806.75, up $23; Range $781.30-$813.90

Feb gold $1,385.80, up $1.50; Range $1,376.30-$1,389.00

Mar silver $29.545, up 0.46 cents; Range $29.395-$29.845

April platinum closed at $1770.30 today, the highest close since January 3.  With the dollar firm and bonds weak I remain a little skeptical of this latest platinum rally.  Support is found at $1750 with resistance at the January 3 high of $1792.  The bulls again seem poised to make a lunge for the November high at $1813.  It will take some time though. A confirmed dollar breakout in the coming sessions could stave it off. 

So far so good for the bulls but I expect more choppy consolidation ahead. 

Apr platinum $1,770.30, up $25.20; Range $1,740.00-$1,774.30

Mar palladium $783.75, up $34.10; Range $753.00-$785.00

Feb gold $1,384.30, up $10.20; Range $1,372.40-$1,386.80

Mar silver $29.499, up 63.8 cents; Range $29.060-$29.710

April platinum just barely managed to avoid technical breakdown today settling at $1734.10 after putting in a low of $1710.60. If the April contract closes below $1722 and then $1715 in the next few sessions the run up to the November high of $1813 will be put on hold. For now there will be a choppy, sideways consolidation unless the bulls get back in gear pronto.

Apr platinum $1,734.10, down $13.30; Range $1,710.60-$1,761.50

Mar palladium $775.30, up $6.25; Range $750.20-$779.05

Feb gold $1,373.70, down $5.10; Range $1,364.00-$1,385.20

Mar silver $29.198, down 31.0 cents; Range $28.580-$29.905

After a big correction day across the precious metals sector April platinum settled $39.00 lower at $1747.40, gold $44.10 lower and silver $1.617 lower. Platinum still has plenty of technical support at $1740 to $1730 all the way down to $1640. The technical picture has not been too damaged. The upward bias established since the mid-November lows is still in force. The bears have bought themselves some time, however.

The setback in commodities is being pegged to investor profit taking on last year’s gains. Even the all-important crude oil took a big dip today. We’ll have to see if this is a one-day happening or the start of a general repositioning into other investments that haven’t performed as well.

Apr platinum $1,747.40, down $39; Range $1,743.10-$1,777.50

Mar palladium $769.05, down $31.35; Range $765.10-$795.20

Feb gold $1,378.80, down $44.10; Range $1,375.00-$1,417.80

Mar silver $29.508, down $1.617; Range $29.325-$30.885

April platinum settled within striking distance of its November 2010 high of $1813.  With palladium getting press coverage along with favorable Indian and Chinese auto demand, industrial demand for platinum group metals should remain robust.  If investment demand doesn’t falter the industrial precious metals could see an extended range upward move. 

Apr platinum $1,786.40, up $8.20; Range $1,769.00-$1,792.80

Mar palladium $800.40, down $2.90; Range $795.80-$808.90

Feb gold $1,422.90, up $1.50; Range $1,414.50-$1,424.40

Mar silver $31.125, up 18.8 cents; Range $30.620-$31.275