Technical traders are pointing to the first monthly decline in 12 months in copper as a sign of a developing downtrend in prices. If it were not for the stronger than expected Chinese PMI data released earlier this morning the copper market might have sustained its 4-day downside breakout and in turn taken out extremely critical support at $3.9420
GOLD / SILVER
The bull camp in gold and silver are lucky after a strong upside breakout an upside extension in the dollar index failed and the Index fell sharply back overnight. Overall, the markets should be cheered by Chinese PMI readings overnight as that tamps down the fear that the Chinese post pandemic recovery was stalling.
The PGM markets got a bullish shot in the arm from overnight news that The South African Public investment Corporation investing $7.4 billion in platinum group metals investments with the fund indicating the rally will sustain longer than expected and will likely see more dynamic supply and demand changes ahead. In palladium, traders are watching the Palladium premium over platinum as the spread between the two markets is likely prompting a-number-of smaller manufacturing entities to substitute and that could encourage more platinum usage ahead.
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