Tuesday, 22 April 2014

Their last trump card...

The current circumstances in the precious metals markets are remarkably similar to those on June 27 and 28 of 2013.
  1. Gold put down a new low since the 2014 recovery faltered. But the yellow metal is cutting its intraday loss towards the close.
  2. Gold is playing it solo: though platinum group metals followed in the plunge, their recovery was swift and Palladium reversed to the positive, while platinum is breaking even by 4 pm and seems to evolve to a positive close.
  3. Silver reluctantly follows gold, but never was down more than a couple of cents.
More importantly: gold miners completely ignored the latest gold plunge. The NYSE Arca gold bugs index (HUI) makes a remarkable 1.54% progression today. Admittedly, the broad market sentiment is bullish as well.

Precisely the same happened on June 28 in 2013, when the HUI index bottomed two days before did the yellow metal. As Gold made a last overnight plunge below $1200 across Asian markets on June 28, its recovery was swift and it sent miners rallying.

Did gold shorters once more play the last trump card on their hand?

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