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Bull Market in Metals

GOLD / SILVER

It would appear as if the bull camp has retained control overnight with the assistance of a weaker US dollar (a 6-day low early), another new high for the move in crude oil and from expectations of a sharp jump in Chinese PPI for January later tonight. It should also be noted that grain prices continue to explode because of insatiable Chinese demand and therefore food prices could also contribute to a reflation trade in gold and silver ahead.

PLATINUM / PALLADIUM

With a huge range up extension in platinum to start the trading week, the bull camp has a technical edge at-the-same-time that broad commodity market bullishness is creating a wave of lift in nearly all physical commodities. While the rally in the palladium market from the late January low has become impressive, we see further gains as difficult to engineer with prices now returning to the middle of a 6-month sideways consolidation range.

COPPER

The copper bulls received two important bullish developments on Monday which allowed them to regain control over the near-term trend. Certainly, seeing some Chinese factories indicate they would reduce holiday closures due to travel restrictions fostered some buying off improved demand views, but the bull camp should continue to draft support from a sharp decline in Peruvian 2020 copper production.

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