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Fresh Lows in Dollar Helping Metals


While divergence between gold and silver on Wednesday is disconcerting for the bull camp, follow through gains overnight, fresh lows in the Dollar and yet another positive economic report from China appear to leave gold and silver with a positive environment. In fact, overnight Chinese industrial commodities continued to strengthen with thermal coal futures reaching all-time highs, a 3 year high in coal, ongoing strength in aluminum and copper futures in China right on 7-year highs.


With another new high for the move this morning, a lower Dollar, favorable Chinese data and positive leadership from the gold market, the January platinum contract appears to be on track to take out the 2020 high made in August up at $1,036.20 in the early action today. The palladium market continues to look sluggish with the market seemingly viewing the commodity as past its historic tight supply condition especially with some industrial demand expected to be lost to substitution.


Despite seeing another favorable Chinese data point overnight, (services PMI for November jumped) the copper market has not registered a fresh contract high. Obviously, the copper market is still technically overbought but is likely balancing that positioning with the general consolidation situated just under the $3.50 level.

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