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Metals Sharply Lower

GOLD / SILVER

Not surprisingly, gold and silver are under significant selling pressure following the news that Russia may have a working vaccine. With Russia not considered to be one of the front running candidates for a successful vaccine and a lack of clarity on their willingness to disperse the composition of the vaccine, the markets do appear to be somewhat guarded in their reactions. A change in leadership in the precious metals complex appeared to take place Monday, with silver dramatically outperforming gold and that could mean silver is in line for some catch-up selling relative to gold.

PLATINUM / PALLADIUM

All things considered, the magnitude of the decline in the palladium market this morning is narrow compared to the declines in gold and silver. Perhaps palladium is capable of making the transition from a flight to quality market, into a classic physical commodity capable of benefiting from expectations for improved demand. The platinum market is also holding together relatively impressively in the face of the wholesale washout in gold and silver, partly because the market had not rallied as much off the safe haven theme as other markets, with October platinum this morning still sitting $65 an ounce below the early 2020 high.

COPPER

Clearly the copper chart structure was damaged to start the week, but prices did climb back into the July consolidation and appear to have shored up support and solidly rejected prices below $2.83. While not a significant change, seeing LME copper warehouse stocks increase today breaks a long daily outflow pattern that started June 19th but that is more of a psychological damage to prices than a true fundamental force.

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