Gold attempting to reverse its trend; platinum breaking out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Last night and this morning, gold is trying to reverse the trend as it breaks through the $1,840 level. The next key level is $1,860 based on April futures. The trend is still lower, and this rally will turn out to be a dead cat bounce or a trend reversal. Until proven otherwise, we will play this rally as a selling opportunity.
Platinum is shooting for the January 2015 highs and could continue to run. Platinum has been running higher for the past year after trading at $562. If platinum can clear $1,200, the next target would be $1,245 and possibly higher. The trend has been higher; we will continue to be long with no reason to sell.
Silver looks ready for a run to the upside as it held major support at $26 and now looks headed to our next target of $28. The Gold/Silver ratio continues to come in and is currently trading at 70-1 versus gold. That ratio was well over 100 a couple of months ago.
As of today, we are long Silver and Platinum short Gold. We would add longs to silver at $26, wait to add to platinum until a breakout above $1,200 and sellers of gold at $1,860. Remember, trades we make can be reversed when the trend changes. All our trades are based on our Algorithm that produces favorable results 66% of the time.
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