Back To the Dugout
The IMC blog entered a hypothetical speculative long position in October-December platinum/gold spread at the equivalent of -$239.40 (premium gold) on April 14th. The position was liquidated at -$350.50 (premium gold) on June 27th, resulting in a loss of -$11,100.
Yesterday’s close was a new all-time low for the spread, while the ratio matched the January 20th multi-decade low of 0.74:1. If a double bottom does not form right here, the ratio could soon reach the October 1982 record low of 0.69:1.
We are now back in the dugout and watching to see how this recent collapse plays out. If the whole Brexit shakeup continues to weigh on the markets, the platinum/gold spread will likely suffer. Once we get some more decisive price patterns, be it a double bottom in the ratio, a recovery in the spread, etc., we will come back up to the plate and take another swing at it.