In my previous post. I said that the silver shake-out indicator being set up is one of several signs that the long consolidation in the precious metals was nearing an end. Another such indicator is platinum. For whatever reasons, it has long been observed that platinum tends to lead gold in major moves up. One reason for this that comes to my cynical mind is simply that platinum is not as heavily manipulated and suppressed as gold. So as big money moves back into the PM sector, platinum winds up being the trailblazer.
As a past example of this, let's take a look at how the big move out of the 2005 consolidation range took place. Since a weekly bar chart filters out a lot of distracting noise, lets compare gold and platinum over that time. First, what did gold do?
This pattern does not always hold true, but platinum has a very strong tendency to lead gold - and at the tail end of the train is silver, the most heavily manipulated of the metals.
So what is gold doing now on the weekly chart?