GOLD / SILVER
We detect a bit of vulnerability in the gold market today with the charts tilting downward and risk on in equities just enough to chase some money from gold. We also think gold was presented with a psychologically bearish development in the form of a Turkish bank swap auction for 20 tons of gold but that story line could take on a much more bearish tilt if the trade thinks other central banks are poised to sell gold holdings.
PLATINUM / PALLADIUM
The palladium market continues to coil into a very tight trading range as if a trend decision is in the offing soon. Unfortunately for the bull camp the charts favor the downside and there does not appear to be a definitively bullish fundamental theme operating in the marketplace on a day to day basis. In fact the headlines are either completely devoid of fundamental driving forces for palladium, or they are simply bearish.
While global equities are showing signs of strength this morning the copper market is facing negative Chinese demand pressure in the form of talk of forced pockets of isolation in Beijing but also from news that Chinese passenger car sales in the 2nd week of June declined by 17% over year ago levels.
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