Darren Sinden, Market Commentator at Admiral Markets, explains the correlation of Gold prices with other precious metals, Asia dollar index and Chinese inflation, and further maintains a bearish outlook for Gold.
Key points from the video:
Inflation story puffed Gold up, time to burst?
Asian dollar index driving Gold in the near-term.
Is gold a proxy for Chinese inflation or the lack of it?
Why isn’t gold higher even when it’s a safe haven? Is it losing its sheen?
Platinum: More downside ahead
Sinden looks at the technical charts and sees Platinum trapped in a downtrend. Looking at the monthly charts, the precious metal has broken below the psychological support at $1000/ounce for the first time since 2008.
Platinum and Gold share a very close correlation, explains Sinden. Platinum looks set to test the late 2008 lows at $800/ounce. The price action also favours further downside in Gold prices, with the yellow metal having dipped lower to new 5-year lows.