Find Out If We Have Reached Another Bottom For Precious Metals Directly At Precious-Metal.org

February 16, 2010 – About a week ago, precious metal prices found a bottom in their trading patterns and began to climb upward, signaling to many that the two-month correction in metal prices was near its end and ready to resume its rally. While most analysts see this upward trend continuing, some are predicting another bottom for precious metal prices.

The precious metal market bears are pointing to a relationship between metals and the stock market, which they claim is indicating a possible additional bottom in prices. While this theory may motivate some to reduce their risk in gold, the gold fundamentals themselves do not bear out the same conclusion. Gold’s Relative Strength Index today is at 54.30, still above the 30-40 range that indicates the possibility of being undersold. Silver is also above the oversold range with an RSI of 46.57, and platinum is currently at 47.87. These numbers all indicate that the respective commodities are still in a positive position.

In addition, a large number of analysts see the trends moving upwards, with Citigroup Inc analysts suggesting a trend for gold up to $1,160 and other analysts speculating that because the Gold/Silver Ratio is just under 70 at 69.44:1, silver is primed to rise statistically even more than gold.

While prices and trends can change rapidly, now looks like a very good time to invest in precious metals, with gold currently at $1,118.90, silver at $16.11 and platinum at $1,537.00 per ounce. If prices do rise, investors holding positions now stand to profit the most, as opposed to those who wait for another bottom that may not come. 

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org