Eye on Precious Metals

A mixed bag in the metals sector today, which bears close watching for the iShares Silver Trust (SLV), Silver Wheaton (SLW), the SPDR Gold Shares (GLD), and Freeport-McMoRan Copper & Gold (FCX).

The SLV is pushing up towards a challenge of its Jan high at $30.44, although for the first time since the pivot low on Jan 25, the SLV is not leading the charge today. Instead, SLW is out front. The change in profile is bothersome to me, as the SLV needs to retake the leadership role.

While this bears watching, let's also notice that SLW has hurdled its Dec-Feb resistance line (36.25/30 area), which could represent a potentially potent upside breakout if the stock can close above 36.30.

The GLD gapped, up too, but is not as strong as the SLV, and has the look of near-term exhaustion ahead of a pullback. FCX smacked into its Jan-Feb resistance line at 56.50, and has since reversed to the downside in what looks like the end of an initial upmove off of its Jan-Feb lows at 52.30/76.

What is bothersome about FCX is what appears to be a significant downside reversal in copper prices today from multi-year highs, despite the strength in gold and silver. Increasingly, the fortunes of FCX appears to be attached to copper rather than gold, which must be watched closely in the days ahead.