Technicals | Feb 19 2009
Gold within US$20 of the ever so magical US$1000/oz is attracting all the media attention, but other precious metals have actually outperformed gold recently and, if the view of technical commodity analysts at Barclays Capital is anything to go by, they are likely to continue doing so.
The team has added a long silver position to its recommended trades this week.
In a special report issued overnight, the chartists highlight platinum too is likely to outperform gold from here on. Supporting this view is the appearance of a head-and-shoulders formation on charts depicting the gold/platinum ratio. This suggests the ratio is about to break out in favour of relative outperformance for platinum.
As far as gold itself is concerned, the precious metal has now broken above its weekly cloud and this has historically corresponded with subsequent gains of 8%-16%. Any consolidation at current price levels bodes well, say the chartists, and should place the focus on US$1000/1033/oz for the current quarter.
