By Walter de Wet
The precious metals market remains range-bound. Looking at the day ahead there is little reason to believe this will change. We favor buying dips and selling rallies for gold.

We do not yet believe that gold can break out of the $1,150 – $1,100 range in which it has been since the second week of December. As indicated in the Focus, downside support is increasing. Support is at $1,116 and $1,101, resistance at $1,134 and $1,140.

Platinum tested resistance at $1,640 but failed to break above it. Palladium continues to find resistance at $480. We are looking for platinum and palladium to test these resistance levels again soon. A condition for both metals remain bullish and while corrections are likely, we view them is buying opportunities.

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The latest Swiss customs data for February indicates the country was a net exporter of both metals. Switzerland exported 9,280kg of platinum and 6,420kg of palladium. These figures are consistent with a pick-up in platinum and palladium demand, driven largely by ETFs.

Switzerland’s export of PGM is informative as the country is regarded as a physical distribution hub for precious metals. Platinum resistance is at $1,640, support is at $1,610. Support for palladium is at $460 and resistance at $480.

Silver support is at $16.20 and $16.90, resistance at $17.60 and $17.75. As with gold, we believe that silver will remain range bound.

Courtesy: Standard Bank

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