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Gold Following Platinum Lower

Published 20/07/2015, 15:26
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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:

Gold following Platinum lower

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.

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