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Higher Metals Futures Outlook


The fortune of the gold market has changed from Friday with the dollar showing some weakening perhaps in the wake of news from a leading vaccine developer CEO who indicated he will have doses of the vaccine available before the end of the year if authorized by the FDA. The silver market is also holding a moderate net spec and fund long and would appear to be poised to slide back down to the bottom of the recent consolidation which starts at $26.56 and with more significant support seen down at $26.29.


While the charts in the palladium market are not overly impressive, a pattern of higher highs and higher lows from last week combined with a jump in trading volume at the end of the week would seem to leave the bull camp with a technical edge to start the new trading week. The platinum charts also finished last week with a positive note with the highest trade since September 2nd forged despite significant headwinds flowing from the rest of the precious metal markets. As indicated in the palladium coverage today, platinum is seeing significant press coverage regarding its windfall from surging manufacturing demand for products requiring glass like laptops and computer screens.


While the December copper contract overnight flared up to a 4-day high, we suspect that was a one off and temporary reaction to Chinese scheduled data overnight. However, the Chinese house price index was not stronger than the prior month and remains well below the surging price gains forged in May and June. The market should see some residual lift from news overnight of a significant jump in delivery orders for LME exchange supply and also because of reports from China that steel and aluminum production in China might be poised to hint new record output readings.

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