Written Commentary
GOLD / SILVER
The gold and silver trade enter the Friday trading session off balance following large declines on Thursday. Apparently positive US scheduled data is a distinct negative for gold and silver prices and apparently positive US data is also supportive of the dollar. Therefore, the US nonfarm payroll reading later this morning is likely to offer some fireworks with the bear camp holding a fundamental and technical edge.
PALLADIUM
Clearly, the dollar rally yesterday undermined the palladium market, and we suspect more of that action today. Overnight the trade was presented with forecasts of strong Chinese export data and generally positive global economic data but that has not prevented lower price action in palladium early today.
COPPER
Like the gold and silver markets, the copper market enters the Friday trading session with injured charts and renewed suspicion of softening Chinese copper demand. However, the copper market might derive significant buying interest from upcoming Chinese import and export data as some economists expect exports to jump aggressively (+37%). Furthermore, it should be noted that Shanghai copper warehouse stocks are down for 3 straight weeks with holdings dropping nearly 3%.
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