GOLD / SILVER
Gold has failed to rally from weakness in the dollar and has also failed to rally during periods of noted risk on and noted risk off. As we indicated earlier in the week, we view divergence between gold and silver as a negative in the current condition and that was clear in the Tuesday US trading session. However, the silver market fell precipitously at the same time that gold held around unchanged and that suggests to us that fears of physical demand contraction were hitting silver yesterday despite weakness in the dollar.
PALLADIUM / PLATINUM
Yesterday the palladium market ranged down sharply and damaged its charts in a fashion that suggest lower support down at $2,565.50 could be tested. Even the platinum market damaged its charts yesterday with a temporary slide below $1,050.
We suspect that slightly higher iron ore and steel prices overnight have provided support for copper prices which likely saw the 5,000-ton daily increase in LME copper stocks overnight as a slight negative. On the other hand, it should be noted that US copper buyers are currently paying extremely high pricing due to supply chain issues, but it is likely that copper will see support from today’s US Federal Reserve meeting.
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