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Bearish Environment Remains


If the declines in the gold and silver markets over the past 6 trading sessions were not so severe (which has severely damaged bullish psychology), we would begin to look for a bottom. In fact, we get the sense that the sting of the sharp washouts has died down and the bearish fervor appears to have moderated down. However, with the psychological/chart damage, a building pattern of ETF outflows (-162,803 ounces in gold Thursday) and what appears to be a dollar “uptrend”, the bear camp continues to have the brunt of the forces on its side.


While open interest in palladium has not declined markedly with the palladium market slide, given the $216 slide in prices since the last positioning report into this week’s low we suspect the palladium spec and fund position long positioning of 4,064 contracts is approaching a “mostly liquidated” positioning. Similarly, the platinum market appears to have found some form of a temporary bottom with key support now seen at $829.20, with the market sliding below that level yesterday and soundly rejecting that slide.


While the charts in copper continued to favor the bear camp with this week’s beat down and the overall global macroeconomic view has been undermined partially by US claims and the unrelenting spread of infections, the market might have found some support at $2.9075.

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