GOLD / SILVER
Gold and silver are tracking lower to start today despite interest rates holding at low levels and the dollar basically pinned down near the lows of the prior 4 trading sessions. Unfortunately for the bull camp gold and silver ETFs both liquidated holdings yesterday with gold net sales increasing to 6.2 million ounces.
From a technical perspective, the palladium market has formed 2 sequential triple top formations in the past 6 days, with the most recent triple high providing resistance at $2849. With the markets interpreting Chinese import and export data for May earlier this week as a sign that the pace of the Chinese recovery is slowing (some traders saw the report as a sign of ongoing strength), we see thickening overhead resistance in September palladium at the previous triple high of $2,875.20 level.
It would appear as if July copper has run into a temporary value resistance at $4.5390 with the outlook for the Chinese economy tempered from recent trade data and residual concerns that China is moving to contain inflation. Containing inflation in China is important given expectations for a large jump in Chinese prices tonight from the PPI index which is expected to post a year-over-year gain of 8.5%.
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