Written Commentary
COPPER
While the copper market can also enter the doldrums during extended Chinese holidays, it is possible that evidence of significant Chinese travel activity could add buying on top of copper’s short covering reversal bounce. However, the risk to fresh longs from macro influences should not be discounted as the attempt to avoid a US government shutdown could rattle all physical commodities before the close today.
GOLD / SILVER
While gold and silver prices are tracking higher early today, their fortunes remain inversely locked with the dollar and treasuries. Rating agencies have already warned of additional downgrades which will further the US government financial crisis. With the beginning of a Chinese holiday and recent Chinese gold prices reaching significant premiums to world market prices it is possible that shorts decided to attack the market over the last week are now leveling of positions.
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