Precious Metals Make Dramatic Upswing

By Peter Aan.

As I write this late Monday morning, the metals have made a dramatic move to the upside. Let’s look at the current technical picture.

The Intraday action in Gold has taken us to the highest level since July 21. As I said last week, a close today (or later this week) above 1104.90 will be a bullish sign. If the bulls do take charge, there is no significant resistance on the chart until much, much higher price levels.

Silver has the strongest chart of this group, reaching the highest levels since July 15. We now look to be on track to work towards an eventual test of the July 13 high of 15.900 (September)

On Friday, Platinum closed above the 956.80 (October), setting the stage for higher prices. Today’s strong rally has me expecting a test and penetration of recent highs at 995.70 and 999.70. Like the Gold, significant resistance on the charts is much higher than these levels.

Palladium is the most reluctant bull in this group, but it did manage to close above the 604.00 (September) level mentioned last week. Higher prices now look probable, and the first resistance level to watch is the August 3 high of 626.55. Once past that, look for a test of the July 23 high of 641.50.

Peter Aan joined Dillon Gage in 1983, and is currently a metals trader for our 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.