This week we review the price movements of gold, silver platinum, palladium, The US Dollar Index, & DOW. We look ahead at the possible direction and levels the gold price in 2019 could hit. We’ll then look at the silver price in 2019 alongside platinum and palladium prices.
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Welcome back digital radio your weekly recap of the precious metals markets. We have a special guest Eric with us here today Torie and Miles sign back on and we're going to hand it right to you Miles and get us started with gold.
Thanks story I appreciate it. You know we did come back to that 382 Fib last week that we discussed.
Not a very strong pullback which is why we were a little 50/50 on could we dive a little deeper well apparently we haven't we're back up over 1300. So we're looking at a couple levels above here 13 26 a little interim failure to return to the previous high then the previous high 1046 another 20 bucks higher go 20 bucks above that at where at the last five year high 1365. So it's possible we could see gold continue to push up here if we do. That's an incredibly strong move on Gold's part having not come back down below that 382 I like a 50 percent. I like the 682 Fib not coming back that far down definitely adds a little bit of strength. So the gold argument especially with what the dollar's been doing which we'll get to here in a minute.
So Miles what is it about that 1365 number that you do like or dislike.
Eric It is a good question you know for the last couple of years we've been talking about this pretty persistent resistance level that we keep bouncing up against. We go up to 1365. We dropped down to eleven hundred. We go up to 1365. We dropped to 1200. This time we go up to 1365 when we push just below 1500. So eventually that's that high point that we expect to break above and then we start looking at the longer term charts where we start looking for where that next resistance level could be 100 150 maybe 200 bucks higher than we're right now. So the 13 sixty five number you've got a lot of people play in defense there or holding short positions are looking to cash out at profit. Just because we've had so much history at that price. So it does matter when we see these long term prices keep getting hit over and over again over extended periods of time. And when you finally push above or below something like that these massive multi-year trend lines then you know you're probably switching directions either the Bulls taking over in this case or at the top and bears taking over. So we'll be excited to see the big term breakout that we've been hoping for for the last couple of years that we've been doing the show. We knew it was coming and it appears it might be just around the corner.
It's amazing to me to hear you say that that's the five year high. You know it's just after witnessing everything that took place from 2007 all the way through 11 even where prices were in 2012 that that's a five year high. So it would be cause for celebration for sure.
What about silver silver like it tends to do is lagging a little bit behind gold in these early stages of the bull market but the movements are more volatile are deeper so were gold only came down to its 3 8 2. The silver position came all the way down to the 618 Fib. Right at the top of the previous high before we turned arguably short term bullish. So I think a move back up to about 16 20 that high from earlier this year is pretty likely. We need a push above it to where we're getting back up into the old highs from you know beginning to middle of 2018. We could be seeing the makings of a head and shoulders pattern and upside down head and shoulders here which I'll draw on the chart possibly playing out 620 move back down to the 15s and then eventually we break through. So there's a couple options in silver here coming over the next few months should be interesting to watch this play out obviously if gold continues up silver follows suit and we're looking in the mid sixteens maybe even up into the seventeen's and silver as gold pushes up above 13 65 towards 4700.
Yeah I appreciate that too. What we've also seen here lately is the volatility in silver which changes the ratio. So Eric maybe you want to speak to this a little bit to the upside silver outpaces unfortunately to the downside over outpaces but we've we've shrunk that ratio from 85 to one down to 84 to one just in a week.
And that again is really our primary focus is that ratio and the reason that you know we follow these ratios closely not only does it show us where the better value in the market is but we're not just silver fanatics here we're buying silver now because it's you're paying pennies on the dollar for your gold. Later we're going to swap out of that silver when the ratio corrects you gain three ounces of gold and voila. Discount them.
Likewise if you have to be freeing up any cash by liquidating metals you certainly want to be leaning more on the liquidation of the gold side rather than silver because you don't want to be selling silver at such a drastically undervalued stage. So Miles what about the other white metals platinum palladium.
I guess for potential bottoms correction levels on the platinum chart during our last show we only came into the first one.