Gold – Platinum spread volatile

After moving from -220 to -170 at the end of 2015 the gold-platinum spread  blew out to -280 only a few days ago. It narrowed to around -260 today, which may or may not prove significant. This spread is way oversold & we stand by the forecast that the narrowing of this spread will be one of the big stories of 2016. Certainly it is more volatile than the metals themselves. Hedge funds are probably taking advantage due to the small size of the platinum market.