Sitting in while Roy Friedman is out, is Peter Aan, a Dillon Gage Metals Trader. Here are his Market insights:
Gold continues its downtrend, working into new lows for this move overnight, but some buying came into the market this morning. Support continues to be at the January low of 1168.3 (basis the April contract). If that should be penetrated, we should then look for further movement towards the December low of 1143.4 and the November low of 1132.1.
Silver also worked into new lows overnight, but buying pressure this morning hints that a test of Friday’s high may be in store later today. Support levels remain the same: the significant bottoms formed in the latter half of December in January 2 at 15.510 to 15.540 (basis March).
Platinum worked into new lows also. Like gold and silver, platinum is at or near oversold levels on the Bollinger Bands. On the monthly charts, Platinum is the weakest metal, sitting at the lower Bollinger Band, a significant long-term oversold condition.
Last week’s range for Palladium was completely within the previous week’s range, and February’s range has been within January’s range. This market remains trendless on a short-, medium- and long-term basis. This morning we have managed to penetrate last week’s low. If we work lower still, we could see a test of the 763.60 support levels mentioned previously (basis March). If that is taken out, then our attention goes to the 758.0 level and the more important support at the January low of 746.0.
Peter Aan joined Dillon Gage in 1983, and is currently a metals trader for their metals division. He is the author of numerous articles for Futures magazine and Stocks and Commodities magazine. He is the author of The Relative Strength Index: A Comprehensive Research Report and a co-author of Trading Tactics: A Livestock Futures Anthology, published by the Chicago Mercantile Exchange.