GOLD / SILVER
We think the gold and silver trade might be in for a rough session today as fears of slowing are likely to magnify before the close as more and more restrictive rules are implemented in Chicago and in areas of the South.
PALLADIUM / PLATINUM
Like other precious metals markets, we view the PGM markets with suspicion into the last trading session of the week. Equity markets are beginning to show the strain of the unrelenting infection spread in Europe and the US and that has begun to foment fears of softening demand for physical commodities like palladium and platinum. While we doubt significant rotation will begin in manufacturing processes from palladium to platinum, a forecast from UBS this week suggested that rotation could gather significant pace next year.
As indicated earlier in the week, it appears as if Chinese economic data has softened slightly and is in a typical monthly lull thereby leaving the copper market without fresh bullish ammunition. However, an analyst on Bloomberg overnight has broken down Chinese monthly copper trade data and has focused on the large jump in the first 9 months imports of unwrought copper and copper products suggesting the 3 month lock down in China earlier this year was only a temporary and limited negative impact on copper demand.
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