Precious Metals: A Pressure Cooker

New York (Feb 22)  As we noted two weeks ago in Entire Precious Metals Complex At Major Resistance, precious metals and miners are all simultaneously at a rarely seen juncture on the price charts. The situation has evolved meantime and it feels like an enormous pressure cooker. In this update, we show the latest charts at the close of the week (February 21st). It appears that gold and silver are right above their important 200 day moving average, while platinum and palladium are at a major technical resistance ready to trend (break out or break down).

The gold chart has improved in the last two weeks. The important 200 day moving average was taken out earlier this week. From a technical point of view, the 200 day MA is important as lots of automated traders and speculators use this as a decision point. If this trend continues, one can expect a next major resistance near $1450, the point where is broke down last April.

Source: GoldSilverWorlds