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Metals Mostly Lower


The gold market has forged a surprise hook up from yesterday’s lackadaisical slide, forged a 4 day high early and appears to be on the cusp of taking out a critical pivot point at $1750. It would appear as if the rise of infections and the rising debate of a return to lockdowns in some states have sparked a modest measure of safe haven buying.


We continue to be bearish toward the palladium market with some idled operations coming back on line and residual fears that a surge in Chinese infections will slow their recovery and in turn limit auto catalyst consumption. In fact, the Chinese noted that the 2nd week of June saw a 17.7% decline in passenger car sales and the Chinese capital has begun to cancel flights, invoke quarantine in certain areas and has shuttered schools again and that increases fears of sagging palladium demand and in our opinion projects September palladium into new lows for the week with a possible ultimate retest of the June low down at $1,832.20


The action in the copper market this morning is very surprising considering ongoing fears of infection problems in Beijing, ongoing infection problems in Texas and in the face of news that the US has threatened Chinese “officials” with penalties because of their imprisonment of 1 million Muslims. Nonetheless the trend apparently remains up and the corrective action into this week’s low certainly helps improve the technical picture.

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