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Bears Maintain The Edge in Metals


In looking ahead to today’s action US consumer price readings and the release of the last FOMC meeting minutes will bookend the Wednesday trade. Inflation expectations are relatively muted compared to recent readings with an anticipated gain in month over month readings for September of 0.3%. While we see gold and silver prices remaining in a sideways chop, the gains in gold yesterday were impressive considering strength in the dollar and general deflationary influences from other physical commodity markets.


While palladium prices have bounced this morning they were likely oversold from a 2 day high to low dive of $150. Obviously, palladium and platinum diverged aggressively yesterday in a move that could have been the result of fresh financial contagion fears in China from their real estate conglomerate problems. The platinum market also appears to have lost its bullish buzz from last week and is encountering very critical pivot point support today at $1000.


With and extending pattern of higher highs and higher lows and the ability to claw above $4.40 overnight, the charts have shifted in favor of the bull camp. The copper market should draw some support from news that Chinese exports jumped significantly in September as that should keep the manufacturing sector moving forward in China.

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