GOLD / SILVER
While February gold managed to reject a lower low dip this morning, the charts were damaged again, and the bias remains down despite the higher early trade. It is difficult to ascertain the current focus of the gold and silver trade as last week’s hard break appeared to be the result of views that political uncertainty in the US might moderate.
As in many physical commodity markets last week, the PGM markets also saw a big picture macroeconomic washout at the end of last week and the spillover from that action is likely to give the bear camp an edge to start the new trading week. With the platinum market exploding for an eight-day low to high rally of $212 and given a net spec and fund long near the highest level since March 2020 early last week, there could be plenty of stop loss selling capacity poised to enter the trade early this week.
While March copper reversed from a new high last Friday and has extended the chart damage early today, the uptrend looks to remain intact. However, the market is significantly overbought, the Dollar is stronger and LME copper stocks posted an unusual daily build of 2,525 tons this morning.
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