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Metals Find Support From Currencies

GOLD / SILVER

With the dollar breaking out to a 3-day low and showing signs of heading back to 92.00, gold and silver prices have found a measure of outside market support. However, we refer to “support” from currency market action, instead of lift which probably requires a trade in the dollar index below the early September low down at 91.93.

PALLADIUM / PLATINUM

About the most positive thing that can be said about palladium this morning is prices have bounced from 3 days of very aggressive selling and have also regained a potentially critical pivot point on the upside at $2205. While the October platinum contract forged a fresh lower low for the move overnight it is approaching critical consolidation support at $956 and could begin to base sideways.

COPPER

With a 6-day upside breakout in December copper the technical tide has shifted back in favor of the bull camp for the first time since August 30th. We suspect the market is deriving support from a weekly decline in Shanghai copper stocks of 7,440 tons as that puts copper stocks in Shanghai at the lowest level since 2014.

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