GOLD / SILVER
While the path of least resistance should be pointing up in gold today, that track is not definitive or notable in scale early on. However, the market is likely marking time ahead of the US Federal Reserve chairman speech at the Jackson hole symposium.
PALLADIUM / PLATINUM
The PGMs sold off sharply on Thursday in the wake of the bombings in Afghanistan and the subsequent acceleration in risk-off mood and therefore any hawkish murmurings from the Federal Reserve chairman today would likely throw December palladium back toward yesterday’s low down at $2357.50. Palladium and to a lesser extent platinum are expected to see demand growth once automobile production expands as the world emerges from Covid, but at this point Covid is more of a drag than a benefit for prices.
With the Chinese government announcing a September 1st sale of 30,000 tons of copper, a bit of bearish Fed expectation in play and soft data this week, we are surprised December copper is managing to hold above $4.20 early today. In supportive developments this morning weekly Shanghai copper stocks declined by 3,185 tons and Japan has posted a sharp decline in July copper exports.
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