July Platinum closed on Wednesday at $854.5. Platinum, palladium and gold have all sold off following Powell’s testimony. It was unrealistic to expect, in my view, that Powell would lower interest-rate‘s further and the market was clearly disappointed. Stable or higher rates suggest a higher dollar, and typically a higher dollar, which makes it more expensive for foreigners to buy the metals that are priced in dollars, creates pressure as it has over the past few days.
Chartists who follow the metals hit the sell button when they all failed to break through resistance.
My view? Platinum is stupidly cheap. Palladium is in a very tight supply situation which will not be alleviated and I think will continue to be firm, as much is I have a strong preference for Platinum. Gold is the new money. The big central bank purchases are statements unto themselves and a foreshadowing of how the world will begin to finally trade gold for what it truly is. Enough of this dollar connection! Enough of this crisis theme! Enough of this inflation play!
Yes, time IS the arbiter of these thoughts and forecasts! :-)