Precious metals: Heavy selling in platinum and marginal in silver – TDS

Silver and platinum continue to feel the worst pain of the precious metal complex, as they lack the same beta to safe-haven and monetary policy flows that support gold, economists at TD Securities inform.

Key quotes

“Silver and platinum are suffering from industrial demand worries, via the spread to South Korea and Europe in particular, on top of having skewed positioning in the same manner as gold.”

 “The outsized down moves have seen momentum signals firm to the downside for both silver and platinum, turning CTAs sellers.”

“While algo selling in silver is only marginal above $16.92/oz, platinum could well see a heavier round of CTA selling, into net short territory, should prices fall below $872/oz.”