Crunch time: Can the metals advance from here?
- Posted by Allan Lederman
- On May 3, 2016
- 0 Comments
So far all systems are go for the great rally of 2016. Silver outperforming gold, dollar weakness and mean regression. The rally is sustainable on dollar weakness, however the weak link is tepid industrial demand. Even with healthy auto sales platinum, palladium and rhodium are far from robust. On the other hand, the producers somehow manage to get prices favorable to their cause much of the time. Conclusion: If gold can breach 1307 and stay there next stop is 1350-1450 and the others will follow, especially silver. PGM’s day will come as they always do, but in the time & place of their choosing. Continued yen strength is a major prop to the market and weaker equities should also lend support. Cup & handle formation still in play. Trend should be intact. Once the bears are routed and the net leg up is over, then the potential parabolic rise is possible. Like the tulip craze, there will be a collective realization that the current state of affairs of print , spend and borrow can’t last. Empires collapse because of this. Don’t forget the black swan. Due soon.