This is such a fascinating space. Precious metals, often times, are in a world of their own. Meaning, the absolute prices gain and lose correlations with other asset classes constantly. We’ve mentioned the Platinum to Gold ratio here before and that spread continues to work. The Gold to Gold Miners ratio also keeps rocking as Miners can’t seem to find a bottom.
But today let’s focus on the absolute prices of Platinum. The daily chart below shows the important overhead resistance between 1720 and 1740. This level has been trouble for over a year now. But the 1900 and change resistance up above that goes back to 2011 is still a long way from current prices.
We probably want to see this resistance cleared before taking on any significant risk. But I think it’s awesome that Platinum continues to dominate the precious metals space. So in relative terms, it obviously looks great. But on an absolute basis, I think it’s worth pointing out that we’re hanging out up here at some real levels.
Tags: $PL_F $GC_F $GLD $PPLT