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What This Metal's Rally Is Saying About the Economy?

Plenty of traders watch goldand silver but top trader Jim Iuorio is watching another metal entirely - platinum.

Following is his analysis:

On Monday, April platinum futures at the CME broke out of a clear sideways consolidation pattern, and now appear to be poised for more gains.

Platinum is reacting to a couple of things, but the most important catalyst is the talk of a global supply shortage. Beyond this, though, there are plenty of macro reasons to get into platinum right now.

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Harry Taylor | Dorling Kindersley | Getty Images

Platinum is used in jewelry and in vehicle production, and it tends to alternate between being correlated to precious metals and to industrial metals. Either side of the story could potentially boost platinum prices, as global central banks continue to devalue currencies, and at the same time, the global economic picture is improving.

Read More: Markets Will Punish Central Banks: Marc Faber

I would buy the April platinum futures right here, around $1700, and target a move up to $1744. Each point in platinum equals $50, so a move from $1700 to $1744 would mean a $880 gain.

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