Written Commentary
GOLD / SILVER
With the US dollar seemingly poised to breakout to the upside, equities tracking higher and another higher high for the move in treasury yields leaves the bear camp in control of gold to start today. The charts in gold also favor the bear camp with the market so far in September unable to throw off a pattern of lower highs and lower lows. In the silver market, the bias from the charts remains down but the market appears to have built some form of credible “shelf” support at $22.00.
PALLADIUM / PLATINUM
Like most other precious metal and physical commodity markets, the month of September has favored the palladium bear camp with macroeconomic slowing in the numbers, projections of unending chip shortages in the auto industry, and threats of severe economic change in China from reform measures. In the platinum market, last week’s rally was forged on significant trading volume but also was accompanied by a significant decline in open interest.
COPPER
We are surprised that copper managed to rally last week in the face of a wave of significant Chinese economic/political structural changes. Many of the new regulations were anti-open market and, in some views, anti-capitalistic and that could have sent copper tumbling.
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