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Precious Metals Technical Outlook:11/24

by on November 25, 2013 1:01 am BST
 

Precious metals continue to decline across the board as bearish sentiment builds moving into the end of the year. Gold is breaking towards the three month low of $1,235 per ounce. Price action as be rather tame after the large decline after the previous FOMC minutes, and consolidation has been taking place. Considering the sentiment, gold will likely break lower because there is no real demand in spot gold after declining of $30 per ounce last week.

Gold, like many other commodities this year, has been a victim of supply and demand. Gold is still inline to retest the lows of $1,179 per ounce.

1D Chart of GC

1D Chart of GC

Silver broke through a daily triangle pattern and has drifted lower ever since. Silver is in overbought territory, but it’s also in overly-bearish territory. Look for gold’s little brother to trade down to price action support at $19 per ounce. An upside pullback is likely to be caped at $20.04 per ounce.

1D Chart of SI

1D Chart of SI

In an update of Platinum’s weekly triangle, price action opened up this week underneath to supporting trend line. Given that is pattern constitutes a larger timeframe, platinum very well could rebound to $1,398 per ounce. However, a close below these levels with signal further downward movement to $1,360 and potentially $1,330 per ounce.

One positive has over its peers is the large industrial demand of platinum, as well as demand in fine jewelry.

 

WK Chart of PL

WK Chart of PL