GOLD / SILVER
With the news the US President has tested positive for the virus prompting a wave of uncertainty in the markets and in turn pushing gold and silver prices down, that would seem to confirm the physical commodity market focus of the precious metals complex. However, the gold market did show some positive traction in the immediate aftermath of the positive test and therefore a return to flight to quality standing is still possible. Unfortunately, for the rest of the precious metals complex it is possible that gold will divergence with the rest of the precious metals complex in a safe haven mode.
PALLADIUM / PLATINUM
We are surprised in the lack of significant selling in the PGM markets this morning, but would expect selling to accelerate given the negative shift in macroeconomic conditions overnight. the palladium market has already violated a short-term moving average on the downside and has forged a 3-day low with little in the way of support on the charts for another $45 on the downside. Similarly, the platinum market has also started out under pressure and has failed to rise above a 21-day moving average for the 3rd straight day and with the rally this week forged on sharply declining trading volume, it is possible that the buyers of the last 8 days will be quick to run to the sidelines.
With the concerning news regarding the US Pres.’s health, the negative turn of events regarding the lack of bipartisan composition of the stimulus plan passed by the House the bear track is intensified. Obviously, the copper market is facing additional pressure from the positive virus test of the US Pres. especially given the potential for other positive tests throughout the US administration.
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