Yet another good day for the precious metals sector, gold , silver, platinum all made new highs while palladium had the best performance the last couple of months gaining around 50%. This is the beginning of the second wave up for the precious metals (Elliot wave 3) , the industrial metals along many other commodities are also acting very strong. Money managers and the financial industry are getting more interested in this market and the fundamentals are bullish. However this is the year of the dog and I expect gold (DOG _L) to finally get rid of its lousy image it had the last quarter century and be one of the best performance assets for 2006, not just among currencies but also among commodities.
Click on the charts below to enlarge
commodities charts: Palladium Futures (PA, NYMEX)