GOLD / SILVER
With another higher high for the move to start today, the bull camp has a slight edge in gold and silver. In fact, with the dollar showing an extension down yesterday, and given a new low for the move earlier today, the currency impact on the precious metals markets looks to be supportive or simply neutral. Like gold, the silver market saw a minimal outflow from ETFs yesterday and has also forged a pattern of higher highs and higher lows in 3 straight sessions.
PLATINUM / PALLADIUM
The PGMs seemed to draw support from the weaker dollar and strong economic data on Monday as both held firm despite weaker action in gold and silver. A 2 1/2 year high in US light vehicle sales points to potential gains in PGM consumption for auto catalysts and that should help shore up fundamental support in July Platinum around the $1,200 level. Like platinum, palladium ETF holdings yesterday were virtually unchanged, with the year-to-date gain holding at 1.5%.
While some think the aggressive flare in prices yesterday was overdone off the fear of a reduction in copper production in Chile, that lift is partially in question today after officials indicated the restrictions on activity will not impact copper mine operations or exports. However, given the flare in Chilean infections, the threat against mine production should not be discounted yet.
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