Written Commentary
SILVER
In a very impressive recovery silver has clearly settled into a leadership role in the precious metal markets. In fact, with a new high for the month and the highest trade since June 23rd September silver seems to have broken out of a bullish pendant formation to the upside. Near-term resistance is pegged at $34.14 and key support this morning becomes $33.85.
COPPER
The surprise change in the Trump copper tariff ration has yanked the rug out from under the copper market was probably caring “too much premium” given the delay in US/China trade negotiations. Apparently, the US president exempted refined metals from the tariff which for the time being virtually eliminated the threat of a US prompted global supply squeeze. The washout this week is already one of the largest and compacted washouts on record sentiment is likely smashed and more stop loss selling is likely.
GOLD
This morning’s new high for the move and the highest trade of since late June the technical picture in gold is pointing up. Unlike yesterday when falling treasury yields were helping to offset strength in the dollar, the gold market today is big help from Treasuries. Clearly, the gold market was disappointed in the lack of economic concern at the Fed and to a lesser degree disappointed by signs that the Fed is unlikely to make a move without significantly softer data over the coming months! While both gold and bitcoin have seen weaker charts structures early this week, today’s sharp range up dashes the bear case.
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