Copper prices overnight started the new week out on a positive footing, with Asian manufacturing readings seemingly jumping ahead of China in the recovery race. It is possible that copper is catching some additional speculative buying off the fact that 2 copper mines in Chile are in-the-midst of labor negotiations, with the talks reportedly at critical junctions early this week.
GOLD / SILVER
While the gold market last week made some inroads against the bearish control in place since the beginning of August, the overall fundamental and technical setup still favors the bear camp. With some press outlets overnight indicating gold has fallen back in the wake of news that the US President could be discharged today, it would appear as if some form of flight to quality buying was behind last week’s rally. As indicated already, the silver market showed less impressive upside action last week than gold with the initial spike up move last Monday followed by lower trade for the rest of the week. In retrospect, the silver market lacked the bullish sensitivity seen in the gold market at times last week and we attribute that to the fact silver is seen as a classic physical commodity market in the face of growing economic uncertainty.
PALLADIUM / PLATINUM
In looking back at last week’s action, it appeared as if the palladium market is tied to the action in equities and is clearly trading more physical related issues than flight to quality/precious metals developments. While the platinum market at times last week showed some positive traction with gains from the spillover lift provided by gold and silver, the definitive reversal of the rally last week was seen with 2 straight lower closes.
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