Written Commentary
GOLD / SILVER
With gold and silver trading higher this morning in the face of China announcing the release of copper, aluminum, and zinc reserves both markets show their primary focus is on financial factors instead of classic physical commodity issues. Obviously, today is a very critical junction for both gold and silver prices with the Fed news in the early afternoon potentially setting the trend for the coming weeks and months.
PALLADIUM / PLATINUM
While the platinum and palladium markets maintain negative chart structures, it should be noted that Monday saw significant inflows into palladium and platinum ETF holdings. the lack of hawkish dialogue from the US Federal Reserve later today could quickly reverse the 2-month-old downtrend in palladium and quickly throw the September palladium contract back above $2,873.
COPPER
With China confirming their intention to deflate physical material prices by the liquidation of strategic holdings of copper, aluminum, and zinc, the copper market was justified in its sharp dive yesterday. However, we think the massive washout in July copper yesterday was also a delayed capitulation to a series of bearish developments starting last week.
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