Gold
With the Labour Day national holiday in the US today, it should be a
quiet day for the precious metals. However, even though a firmer dollar
and a bout of profit taking pulled gold back from $1000/oz last week,
it only retreated as far as $986/oz before climbing back to $994/oz.
This is a strong indicator that gold can maintain its bull trend. The
next level of resistance is $997/oz with $1,005/oz and $1,032/oz
thereafter.
Silver
Silver has been the star performer over the past couple of
weeks, de-coupling from gold and bringing the gold/silver ratio down to
60:90. If this continues, a ratio of 55 would provide channel support.
Due to the huge move in silver in a short period of time, investors
should be aware that there may be profit taking and may need to be
consolidation. The daily momentum in silver is overbought, the first
time since June and it is currently at the top of its confluence of
resistance which is $16.22/$16.33/oz. These pullbacks should indicate
buying points rather than wholesale liquidation as silver looks to
continue to push higher, despite short term corrections. While being
overbought there remains the risk of a short squeeze which could propel
silver prices higher.
Platinum group metals
Platinum is currently trading at $1,263/oz, palladium is $295/oz, rhodium is $1,500/$1,700/oz.
