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Lower Bias in Metals Complex


In the early action today, the dollar appears to be poised to breakout to the upside in a move that would likely add to the vulnerability of gold today. Another overnight negative came from China where the Chinese nonferrous metals industry Association predicted a top in metals pricing due to the Delta variant, but also because they feel central banks will step in and tighten policies.


If it were not for yesterday’s large washout in palladium prices the higher opening today would have been extremely difficult to manage considering that US vehicle sales for July came in at only 14.8 million versus the previous month’s 15.4 million reading. The platinum market continues to show periodic large ETF inflows, but those inflows have been nearly ignored by the futures market.


In addition to negative initial chart action the copper market is under pressure today because of statements from the Chinese nonferrous metals industry Association predicting the end of the bull market in metals. The group predicts a top in prices because of the Delta variant and potential action by central banks to preempt inflation.

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