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Precious metals market as a whole has been sending mixed signals recently. We've seen local bottoms in gold and silver along with indications of a strong rally emerging, but then the prices refused to go much higher and currently there seem to be no clear signs as to when the rally resumes, based on the charts of these metals alone.

This is why in today's article we delve into platinum and palladium markets in search of a spark that could rekindle the bull market. Let us then move to the technical part of today'™s article - we will start with platinum's medium-term chart (charts courtesy by http://stockcharts.com.)

The picture is bullish here as no invalidation of the recent breakout has been seen. Prices have actually held pretty well here while price declines have been seen for most of the precious metals in recent weeks. Moreover, platinum has been rallying on Monday without even moving below Friday'™s close.

Let us now move on to palladium'€™s medium-term chart.

In the chart, the outlook remains bullish as the breakout has been more than verified and higher prices have been the norm for several weeks now. Palladium'™s prices have fared even better than platinum'™s of late and have approached their September highs. This is far from the case for gold, silver, platinum, or the mining stocks which are all well below their September price levels. Even though palladium is doing pretty well today (about 0.5% higher than Friday'€™s close at the moment of writing of this article), the RSI indicates that a pause in the recent rally is likely here, so caution seems warranted with respect to opening speculative long positions in palladium for those inclined to do so.

Summing up, platinum and palladium provide us with some bullish medium term signals for the precious metals sector.

Thank you for reading. Have a great weekend and profitable week!

Przemyslaw Radomski, CFA