GOLD / SILVER
The gold market has followed through with an upside breakout and is approaching levels not seen for 8 years. The market seems to be catching inflows from a number of different themes with this morning early weakness in equities providing fresh buying interest. The emerging number one story for gold is the escalation of infections in 12 different US states with some markets attempting to factor in a growing potential for lock down in the troubled areas.
PALLADIUM / PLATINUM
While September palladium spent the majority of the Tuesday trade in the upper quadrant of the Monday range and has technically broken out to the upside this morning, the fundamentals are mixed to mostly negative. In fact, China’s version of their quarterly Beige Book showed their economy contracted and the US infection situation is likely to result in lockdown talk very soon. Yet another potential undermining force for palladium came from Boston Fed President Rosengren’s downbeat comments citing concern for the recovery as a result of “unsafe re-openings”.
The copper market is showing some corrective setback action this morning as the global economic outlook is being called into question. However both LME and Shanghai copper stocks (Shanghai stocks released early due to the Dragon boat Festival) both notched notable declines overnight and therefore supply news this morning is offsetting a portion of the negative demand news. It should also be noted that Shanghai copper exchange stocks have declined for 6 straight weeks with this week’s decline 9.1
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