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Sideways Chop in Palladium


Apparently, a lack of definitive direction from the dollar has allowed currency related selling of gold and silver, but it is also possible that a 12% gain in Indian gold prices in terms of the rupee is discouraging gold demand in India. As-a-consequence, Indian gold prices have traded at a discount to world pricing, which is not surprising considering that India remains under significant lockdown due to its ongoing infection problem.


With a massive downside breakout extension in September palladium damaging the charts yesterday, one would expect the bias to have shifted downward. However, the weakness in June has been forged on extremely thin trading volume and the September palladium contract did manage a bounce yesterday of $65 from the lows in a sign that the $2,750 level is a value zone. In a negative development from yesterday, platinum ETF holdings declined by a noted 8,176 ounces, which is a daily percentage change of -0.2% leaving year-to-date gains in palladium ETF holdings at 2.1%.


The copper market has been negatively impacted by today’s Chinese inflation data, as the hot PPI reading has fostered ideas that the PBOC will be forced to pull back on stimulus and or use policy threats to dampen price gains in various key industrial material prices like copper. In a negative supply-side development, BHP workers in Chile have agreed to extend talks two days and that might show a willingness to get a labor deal.

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