GoldNuggets — Gold, Silver, Platinum
GoldNuggets Digest: gold vs small business uncertainty, gold buying flows, the silver trend indicator, platinum price technicals and sentiment... $Gold - main 2504(GCmain)$ $Silver - main 2503(SImain)$
Certainly Uncertainty
Peter Redward of About Gold tells readers that “the primary driver of demand for gold appears to be safe-haven appetite due to increased economic uncertainty.“
A key example is the chart of his below which shows changes in the gold price mapped to the NFIB Small Business survey “Uncertainty Index“, which notched up its 3rd highest ever reading in January.
Gold Buy Flows
Central Bank and Speculative buying flows are arguably linked with this as some of the central bank reserves diversification is a direct reaction to doubts and uncertainty around traditional reserve assets like treasuries (sanctions risk and geopolitics, fiscal concerns, inflation fears); while the uncertainty narrative is also a key driver for speculative flows.
Silver Trend
Jesse Colombo of The Bubble Bubble Report provides some helpful advice on Silver market analysis: “if the daily fluctuations of silver—one of the most notoriously volatile assets—leave you frustrated, consider tracking its 200-day simple moving average for a clearer long-term perspective.“
Looking at the smoothed silver price in the chart below makes the trend very clear despite the ongoing weekly/daily chop.
Platinum Market
Lastly, I thought I would provide an update and some visibility on another precious metal: Platinum. Unlike gold and silver, platinum has been stuck in the range — coiling into a triangle pattern with a series of lower highs and higher lows. This classic charting pattern signals indecision, and eventual breakouts can be explosive.
Meanwhile back on the 200-day moving average (the light blue line), you can see that likewise there’s not much of any trend there yet. Sentiment meanwhile is highly bullish and trending higher.
I often describe silver as a combination of precious metal and industrial metal, and platinum is the same… but the weighting to industrial metal is a bit higher. So we probably need to see global growth sentiment heat up a bit more for this one to breakout (which also makes it less of a defensive asset, more of a cyclical).
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
