Gold’s Bigger Picture: Rally Off New Lows

London (Sept 1)  Gold Spot price has rallied minimally following the break to a new low, thus far halted at the declining 200-day MA. Interestingly, one might have expected Gold to rally more forcefully in face of major U.S. index declines last week. Resistance remains above at 1,200 and 1,250 but the trends remain down even at these levels and well under the 2005 uptrend. Weekly and monthly momentum models remain negative and flat. The downside target at 1,000, the support from 2008-2009, remains in place.

Platinum – Consolidating near the lows

Platinum spot price (PLAT-1,018.35) stalled at the low last month near 1,000. Both weekly and monthly momentum remain negative suggesting upside should be limited into resistance near 1,100 and the declining 200-day MA near 1,135. Support / target remains 800, near the 2008 low, if the recent low at 945 is breached.

Palladium – Still Declining

Palladium spot price (PALL-588.10) continued to decline, plunging through the 2012 four-year support near 570 completing a four-year top with risk toward 500. Both weekly and monthly momentum models remain negative and falling, supporting further risk, notwithstanding upside rallies toward resistance at 600-650.

The above article is an excerpt from Yamada’s latest monthly update for premium subscribers, released today. We recommend subscribing to the monthly in-depth analysis of Louise Yamada on www.lyadvisors.com for quality technical analysis of all markets.