David Fuller's view The sector took a beating along with most other markets today. Short-term stochastics indicators are oversold. More importantly, downtrends for gold (weekly & daily) and silver (weekly & daily) are overextended relative to their 200-day MAs. Today's prices are less of an incentive for production. However, over the near term these patterns are unlikely to support more than technical rallies within the overall downward trends. Some base formation development will be required before we have evidence that selling pressure is subsiding and investment demand increasing.

Palladium has held up best (weekly & daily), although it too has fallen sharply in the last two weeks. Having seen its rally rebuffed in the $800 region once again, palladium would have to rally back above $700 and the MA too offset scope for a test of prior support in the $600 to $550 region. Supply concerns regarding Russia are a potential bull story for the medium to longer term.

Platinum (weekly & daily) fell to its lowest closing level since late 2009. This is a potentially significant downward break and a rally back above $1550 is required to confirm a downside failure and further recovery scope. Supply concerns regarding South Africa are a potential bull story for the medium to longer term.