Gold price up, but silver and platinum values lower is interesting

June 9, 2020

London (June 9)  The metals action is interesting and suggesting that they may be getting ready to reverse directions. We do not predict markets; we trade the price action. For the last few days, gold, silver and platinum have showed many warning signs. Each attempt to break them has been met with buyers; however, it appears they are losing steam.

Gold was able to get back above the key $1,700 level and is higher this morning with an overnight high of $1,717.70 in the August futures. That is all good; however, the overall pattern looks bad. We will remain long without adding to our positions, realizing the probabilities suggest a reversal is near.

Silver is still the strongest of the group but from a signal standpoint will turn bearish on the down move over $0.20. We are watching the $17.60 level closely, based on the September futures. Platinum is now the dog of the group, and the next down day of any size will trigger the reversal.

In other words, all the metals need a significant rally to escape the inevitable sell signal. Because we trade only from a mathematical model, news, interest rates or any of the other reasons given to buy metals is never part of our decision making. It’s all about the numbers; it’s that simple.

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