Thursday, December 13, 2007
All during the commodity bull platinum has been the strong sister in the precious metal sector. It has already broken out to new all time highs. Both Platinum and Gold are consolidating in triangle patterns after the powerful fall rally. The positive take away is that triangles usually break on the flat side. In the case of Platinum a break of the flat side would be up. If Platinum breaks up it will take the rest of the precious metals with it. At the moment silver is struggling but I have a feeling that some of this may have to do with the industrial component of silver and an economy that is slowing and may be heading into recession. If gold and Platinum move up though I expect silver to follow. I'll be watching Platinum in the coming days to get an idea what's going to happen to gold and silver.