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Metals supported as USD softens

Commentaries & Views

Thus far, nothing has changed regarding the setup we have been discussing in the monetary metals. Gold and silver seem to be finding support in the area expected to provide.

Dollar strength is once again waning after hitting the top end of the channel we have been presenting for weeks. Note, however, that this time, the dollar RSI is showing a negative divergence against the price on the weekly timeframe; this is another sign that a reversal in the index is near. A softening USD should coincide with a move up in gold, silver, platinum, and US stocks (which have been forming a base of their own).

The below platinum chart goes back a decade. The symmetry is clear. Platinum is also heavily oversold at the moment, with sentiment in the dump along with gold and silver. Platinum may currently be priced at less than what it costs for miners and refiners to sustainably produce.

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