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Precious metals update

There are no new signals to report or discuss in the main asset classes, so we write today about Gold, Silver and Platinum.

This set of metals known as 'precious' have all moved up by varying degrees in recent months, Gold and Silver both rising about 20%. Platinum was considered the most precious of all some years ago but it has since languished and has managed a rise of only about 12% in this recent rally:

Precious metals summary daily

Each market started its run-up with a compression. Gold simply 'took off' but the compressed level was re-visited in Silver, giving another chance to buy just before the main ascent. There has now been a top extension in Gold, as shown in the first chart above and as reported in the August 14th edition.

Looking at the longer-term picture reveals a similar story.  We can see that the bull market in Gold actually started at the end of a drop last year but the Silver up-move started from a weekly compression that matched the daily version.

Precious metals summary weekly

There have now been two weekly-scale top extensions in Gold which provides a loud warning not to get too enthusiastic here - the risks of a drop are starting to outweigh any chance of further price gains. This also calls into question the general flight into 'safety assets' that has been much remarked in the press. It looks over blown...

All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com