Gold Gains, Other Metals Soar

Published on Thursday, 02 February 2012 18:14 Written by Todd Shriber

New York, February 2^nd (TradersHuddle.com) – Despite a slightly stronger U.S. dollar, weekly jobless claims data helped lift gold prices with futures for April delivery jumping to $11.50 an ounce to $1,761, extending the yellow metal’s winning streak to three days. Initial claims for jobless benefits fell by 12,000 to 367,000 last week. Economists were expecting a reading of 371,000. The PowerShares DB US Dollar Index Bullish (NYSE: UUP) settled higher by a penny.

The iShares Gold Trust (NYSE: IAU) was up 0.8% and the ETF’s chart is growing gradually stronger. Sure, that’s a nice a gain, but it pales in comparison to the 1.8% jump for the iShares Silver Trust (NYSE: SLV). That increase came on above average volume and puts the ETF that much closer to taking its 200-day moving average around $35. SLV is up a whopping 23.8% to start the year.

Platinum continues to flex its muscle as the ETFS Physical Platinum Shares (NYSE: PPLT) rose 0.65% today. Yes, platinum’s rise has been fueled by electric power issues in South Africa, one of the world’s largest producers of the white metal, but PPLT’s winning streak is impressive because almost everyday that we note the ETF is higher, we also note volume is above average and that was the case today.

The ETFS Physical Palladium Shares (NYSE: PALL) gained 1.4% on volume that was nearly double the daily average. What’s more important about PALL is not that it has resumed its winning ways or that it has done so on impressive volume. Most important is that the ETF has come to a potential make or break point as it came to a dead stop at critical resistance at $70 today. Coincidentally, that also happens to be the ETF’s 200-day moving average.

Another precious metals ETF that hasn’t been getting a lot of press, but that has also been on the move higher is the ETFS Physical White Metals Basket Shares (NYSE: WITE). WITE is the ideal metals ETF for the indecisive investor that already has gold exposure because WITE is combination of physical silver, platinum and palladium holdings. The composition no doubt helps explain why the ETF is up almost 20% and is also nearing its 200-day moving average.

Miners extended their torrid runs with the Market Vectors Gold Miners ETF (NYSE: GDX) adding 1.6%. The ETF is now within spitting resistance of critical resistance at $58. GDX’s small-cap cousin, the Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) rose 1.3% on slightly above average volume while the Global X Silver Miners ETF (NYSE: SIL) was higher by the same amount. Neither GDX nor SIL appeared to be bothered by the debut of competing iShares ETFs today.