Precious Metals Monitor: Gold Forms Rounded Bottom Ahead Of Likely Push To $1700, Palladium Ripe For Buying

We offer our latest analysis on the precious metals market.

This past week featured more of the same for precious metals, as the sector consolidated in a narrow band. While most other risk assets — including other commodities — fell, precious metals held their ground.

However, the sector still lacks a strong catalyst to send prices meaningfully in either direction. Nascent worries about an economic slowdown and renewed concerns about eurozone-sovereign debt have not been enough to spur significant safe-haven buying in gold or silver.

That may change if market fears intensify; otherwise, gold and silver look poised to continue within their respective bottoming patterns.

Gold may be forming a rounded bottom. An eventual push to $1700 resistance is likely. Above that lies key resistance at $1800.

GOLD

The technical outlook for silver is not as constructive. The gray metal has been trapped between $31 and $33. A break to the downside exposes psychological support at $30, while an upside break may lead to a rally to key resistance near $35.

SILVER

Meanwhile, platinum and palladium showed divergent performance over the past week. The former is struggling under former-support-turned resistance at $1600. The next level of support lies at the 50 percent retracement of the December-to-February uptrend near $1540.

PLATINUM

A much more bullish case can be made for palladium, which successfully held the bottom of its channel during this recent correction. A potential rally to the top of the channel near $750 offers nimble traders a compelling profit opportunity.

PALLADIUM