Written Commentary
GOLD / SILVER
While August is supposedly one of the stronger seasonal months for gold prices, the market has started the month off soft and appears poised to slide back below $1800 again. Some press outlets overnight are suggesting gold and silver are liquidating ahead of the Friday nonfarm payroll report which in our opinion is a suspicious view.
PALLADIUM / PLATINUM
Surprisingly, the PGM markets managed to track higher in the face of a risk off environment in the US yesterday and the palladium market appears to be poised to forge higher highs later today. Traders should expect expanded volatility in the palladium market following US vehicle sales figures for July that will be released after the trade has concluded today.
COPPER
While the copper market initially managed to discount the disappointing Chinese PMI data and managed to discount a series of disappointing global manufacturing PMI data points, the market ultimately fell apart to start the trading week and has extended downward again this morning. In addition to looming supply fears from the Chinese strategic reserve auctions, the copper market is also facing the threat of lost demand because of a growing list of geographically diverse infection hotspots from the delta variant.
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