In the aftermath of last Friday’s employment report, the prices of gold and silver headed lower. The signs were there for the precious metals sector as silver rallied to a new short-term high at $16.96 per ounce on August 2 and then closed the session below the previous day’s lows. On Friday, August 4, silver did the same thing putting in its second bearish key reversal trading pattern on the daily chart in three sessions. Silver closed on August 4 at $16.25, 71 cents off the highs of the week. The downside action in gold was a bit less dramatic as the price traded just over the $1280 level during the week and closed on August 4 at the $1265 level on active month December COMEX futures.
Gold and silver had been rebounding since reaching lows of $1211.10 and $15.145, respectively, on July 10. Meanwhile, the precious metal that has been the worst performer since way back in late 2014 had a very good week and closed last Friday near the highs after trading at the highest level since April. Platinum has been a dog with fleas but every dog eventually has its day, and we will see in coming sessions if the price action in platinum is just the beginning of a long overdue correction for the rare precious metal. While other precious metals were heading lower, platinum caught a bid on August 4.