Written Commentary
GOLD / SILVER
Despite the fact that India is usually the world’s second-largest gold importer, the gold market did not see lift overnight from news that Indian August gold imports came in almost twice the amount seen one year ago. It should be noted that the Indian gold imports were also the highest in 8-months, but the jump was thought to be the result of restocking by jewelers after prolonged shutdowns.
PLATINUM / PALLADIUM
Like the gold and silver markets, the PGM markets today are showing corrective action because of the strong allure of equity market gains but also because of strength in the dollar. Relatively speaking, the palladium market outperformed the rest of the precious metals complex on Tuesday with a sustained rally that could finally signal the markets acknowledgment of the progressive recovery in the Chinese economy. The platinum market also joined palladium with an upside breakout to a 9-day high yesterday but showed significant retrenchment from that high of $23.00 into the close on Tuesday.
COPPER
The copper market extended yesterday’s reversal slide with a test of the psychologically important $3.00 level early today and forged that slide in the face of news that all base metals have regained all the losses posted earlier in the year. The copper market also discounted a 2-year high in steel prices overnight, another noted decline in daily LME copper warehouse stocks and a bullish Citibank copper price projection.
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