GOLD / SILVER
With a fresh lower low for the move and the lowest trade since July 12th, the charts favor the bear camp to start the Thursday trade. While there has been a back-up of treasury yields, that negative outside market influence is likely offset by a downside extension and 3-day low in the dollar index.
While the palladium market forged a 3-day high yesterday, the reaction was not indicative of a market poised for significant additional gains. In other words, a definitive “risk on” vibe, significant gains in energy prices and recent evidence of lower mining output from a key producer all failed to spark a noted rally. the platinum market does not appear as if it is benefiting from signs of improved physical demand and prices have not shown resiliency in the face of strength in palladium, and crude oil.
While the copper market missed out on the big picture broad-based “risk on” recovery throughout commodity markets yesterday, and that should be troubling to the bull camp, the market has regained its footing this morning off a global risk-on environment. Certainly, news that China plans to auction 30,000 tonnes of copper from state reserves next week, makes it clear the Chinese government is serious about holding down key input prices to their economy, but copper now appears to have gotten beyond that event in good fashion.
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