Precious Metals Recovery
Yesterday, the precious metals, most notably gold, were subjected to some violent price activity. As New York entered yesterday’s trading session, 900,000 toz of gold (9,000 lots) were sold at the precarious timing of the Comex open. The move precipitated a rapid move downward as stops were triggered before gold finally found support ahead of the psychological level of $1,700. The yellow metal was able to recover well from its lows and the market today is enjoying a gradual move upwards with equities, the euro, and crude oil all in the green. The swift change in price yesterday is a reminder that the precious metals’ short term to medium term movements are dominated by leveraged money.
Silver, platinum, and palladium recovered even more impressively than gold in the last day and a half. Silver traded up nearly $1 from its lows yesterday and today it has made fresh highs not seen since the beginning of October. $35 remains the near term target where profit taking offers should be waiting. Palladium has been in a solid upwards trend channel since the end of October. It closed yesterday on the highs of the day and has made further gains today thus far. It is nearing the major technical area of $700 which it failed to break decisively in September.
