DMac
28th April 2010, 09:06 AM
What's Leading Gold (http://kevinsmarketblog.blogspot.com/2010/04/whats-leading-gold.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FTIUlk+%28Kevin%27s +Market+Blog%29)
http://4.bp.blogspot.com/_N9xrCjjHNRw/S9Zb8J4_K7I/AAAAAAAAE04/gJ2NOQVmQo4/s1600/pall1.png
Above is a weekly chart of Palladium, Gold and a ratio of Palladium vs Gold. As you can see, Palladium has been much stronger than Gold since the beginning of 2009. If you take a look at the ratio line in the lower panel you will notice that this line has been rising which means Palladium has been outperforming gold.
The second strongest metal is Platinum which many times tends to follow Palladium's lead. Palladium is clearly the leader of the metals complex (Palladium, Platinum, Gold and Silver) which is why I decided to post the above chart. You'll notice that Palladium is now approaching major resistance from 2008. A push through this level may be just what gold needs to break out of it's sideways consolidation. A failure for Palladium to break through resistance may put pressure on the rest of the metals which is why I will be watching this resistance level very closely!
http://4.bp.blogspot.com/_N9xrCjjHNRw/S9Zb8J4_K7I/AAAAAAAAE04/gJ2NOQVmQo4/s1600/pall1.png
Above is a weekly chart of Palladium, Gold and a ratio of Palladium vs Gold. As you can see, Palladium has been much stronger than Gold since the beginning of 2009. If you take a look at the ratio line in the lower panel you will notice that this line has been rising which means Palladium has been outperforming gold.
The second strongest metal is Platinum which many times tends to follow Palladium's lead. Palladium is clearly the leader of the metals complex (Palladium, Platinum, Gold and Silver) which is why I decided to post the above chart. You'll notice that Palladium is now approaching major resistance from 2008. A push through this level may be just what gold needs to break out of it's sideways consolidation. A failure for Palladium to break through resistance may put pressure on the rest of the metals which is why I will be watching this resistance level very closely!