Written Commentary
GOLD / SILVER
Despite another lower low for the move in the dollar this morning both gold and silver markets are starting off under minor pressure. Unfortunately for the bull camp, gold and silver ETFs saw more outflows yesterday with gold holdings currently down 6.8% on the year. On the other hand, silver ETF holdings remain 3.8% higher on the year.
PLATINUM / PALLADIUM
The palladium market was likely lifted by strong US light vehicle sales from earlier in the week, but also from signs of a strong US labor market (JOLTS report) but also from signs of strength in Chinese services PMI as that suggests China’s appetite for vehicles will continue to expand. Turning to the July platinum contract the market initially failed at even number $1,200 yesterday but the aggressive rebound directly in the face of yesterday’s sharp washout in palladium hints at spread trading.
COPPER
With LME copper stocks jumping by 6900 tons overnight the pattern of rising global copper warehouse stocks continues to be limiting of attempts to regain the top of the last 35 days consolidation up at $4.19. With prices spending most of the early trade today in negative ground the bears camp starts with confidence.
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