Could technical consolidation offer trading opportunities in Palladium and other metals?

''Another European Union summit is scheduled the next day.  On Dec. 13, the Federal Open Market Committee will hold its next policy meeting.

The Linn Group's Ira Epstein mused in a note:

'A bother to those of us who follow gold has been that Europe's sovereign debt issues no longer are acting as a gold prop, nor has the war of words between Iran, Israel and the western developed countries of the world.  Even the storming of the British embassy in Tehran had little impact on gold prices.  So what's obvious is that gold needs a new story if it's to mount another leg up.'

That new catalyst, he adds, is likely to be inflation.  From a technical standpoint, Epstein believes more consolidation needs to take place in gold and silver prices.  He sees $1,704 an ounce as a key level for gold futures.  The analyst added that 'if the price pattern of higher highs and higher lows is going to hold up, this is 'the' number that should not be taken out.'

Gold for February delivery lost 0.6% on the Comex to settle at $1,739.80 an ounce. March silver fell 0.1% to finish at $32.76 an ounce.   It had traded higher for most of the day.

Also of note: March palladium gained 2.9% to settle at $630.20 an ounce.''