GOLD / SILVER
With a very impressive recovery this morning taking out yesterday’s high, it is possible that a-number-of fresh shorts were caught pressing prices too far yesterday. Holding back both gold and silver this morning is another outflow from ETF’s yesterday with gold posting the 6th straight day of declines with silver posting its 10th straight day of declines.
PLATINUM / PALLADIUM
With another new high for the move posted early today in platinum and favorable fundamental stories surfacing in the press from Southeast Asia, the platinum market should regain the $1,000 level soon. It should be noted that money is beginning to flow into platinum ETF’s with an inflow yesterday of 26,740 ounces which brings the year to date expansion of holdings up to 13%.
With another positive Chinese manufacturing PMI reading overnight the hope for growing Chinese copper demand is revitalized and given specific dates for administering the vaccine, the big picture environment for copper would seem to justify additional new highs for the move. However, the copper market exploded again with a 2-day low to high rally of $0.17 on Monday and that combined with another record spec and fund long positioning should mean an ongoing uptrend will be fraught with two-sided volatility.
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