Written Commentary
GOLD / SILVER
The gold market has started off with damage to its charts in the form of a 6-day low with prices also approaching very critical consolidation low support levels of $1764.10 and $1761.20. We suspect that part of the pressure on gold emanates from a 5-day high in the dollar, but potentially from growing concerns of renewed lockdowns because of the Delta variant infection count. We suspect that lower Asian equity market action overnight and signs of strength in the US dollar also dented interest in gold and silver.
PALLADIUM / PLATINUM
The palladium market yesterday ranged up aggressively and in-the-process forged a 7 day high with those gains taking place in the face of disjointed waffling in the rest of the precious metal markets. However, palladium has fallen back overnight as if the $2700 even price level is formidable resistance. The platinum market failed to climb in sync with palladium yesterday and has declined much more significantly than palladium this morning confirming ongoing price divergence and even divergent fundamental focuses.
Set of copper pipes of different diameter lying in one heap
COPPER
With a gap lower trade to start today, the copper trade appears to be factoring in a disappointing Chinese official manufacturing PMI reading tonight. However, it is also possible that growing concern of return to lock down in some areas around the world, because of the Delta variant is rekindling demand fear. Other negative developments are strength in the dollar and a general risk off vibe in most physical commodity markets.
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