May 21, 2025 (Gold Market Wire) - The idea to purchase at the channel bottom has worked out well. We were prepared for a second purchase around $3089...but we failed to get there.

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Its our view that Gold is getting ready to re-visit $3500. Until our channel breaks down in earnest - and not with yet another predictable, weakly executed, head-fake (see above!), we are holding length for the trading book. The core remains long and unchanged.

The secondary position - to get long Silver and Platinum, spread against gold has also turned to our favour. Long Silver/Short Gold was, more or less, a scratch, but our Long Platinum/Short Gold spec was a sight to behold. Platinum took off like a rocket in yesterday's sessions - and has followed through nicely.

Platinum picked up over 5% on the day, and is following through in the East on this Wednesday morning. We will unwind the gold leg of the spread now and run platinum outright long. We attribute yesterday's breakout to the long awaited 'catch up' with the gold mania fused with the idea that platinum will now become a precious metal in its own right in the retail world, again. Gold's soaring price has shifted retail buying interest to Platinum and there have been reports of solid Chinese interest.

On this aspect we make the following note. Precious metals, more than most commodities, react to the sentiments of the 'crowd'. As it stands right now, a lot of that 'crowd' is in China. China's personal savings rate is somewhere over 40%, compared to roughly 6% in the US. The Chinese remain in saving mode, scarred by the housing market disasters, and what better instrument to save in than Precious Metals. Right now - platinum fits the bill. This is not a new phenomena. Platinum has often been the "alternative" PM, and it is re-establishing itself in this role. It is a metal to accumulate. Gold, for many, is simply getting too expensive.

The majority of Gold is held by Central Banks, Banks, institutions (IMF) and HNW individuals that have little or no interest in selling. There are fairly 'iron grip' holders. They are also likely to remain accumulators. All of that means that the retail side of the market... the millions of people willing to buy as personal investment is the sharp edge. The metals can, and will, move on public sentiment. And right now, sentiment is acquisitive. That's the best underpinning for gold and metals that the market can have.