Written Commentary
GOLD / SILVER
After a significant range down failure on the charts overnight, the gold market has come bounding back with a compacted recovery of $42. With infection problems surging in China and Germany, daily US cases holding above 210,000, a rollover down in the dollar and the prospect of significant political angst in the US transition of power, it would appear as if flight to quality bargain hunting buyers stepped back into gold and silver overnight.
PLATINUM / PALLADIUM
While the PGM markets have not paid particular attention to the production/supply side of the equation it should be noted that South African PGM output in November declined by a massive 16.1% on a year over year basis. Critical support for April platinum today is seen at $1089.90. The palladium charts are also negative to start with a 5-day low registered early and little in the way of support until a recent double low down at $2344.50.
COPPER
In retrospect, Chinese data released during the Monday US closure was mixed and therefore could be considered somewhat negative for copper. Certainly, year-over-year GDP growth at 6.5% is supportive of copper (even if that growth remains well below trend) but that news was heavily offset by a quarter over quarter GDP growth of only 2.6% and that bad news was amplified by a softer than expected Chinese retail sales reading.
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