Written Commentary
GOLD / SILVER
The gold market continues to coil in sync with coiling in key outside markets like treasuries and the dollar. Yesterday gold and silver ETFs both saw their holdings decline with the year-to-date gain in silver ETF holdings reduced to 3.2%. While many will suggest that the ebb and flow of “inflation” is one of the key focus points for the gold and silver trade, we would suggest that “deflation/slowing” is becoming a potentially important issue.
PALLADIUM / PLATINUM
While we doubt that palladium will tightly track the ebb and flow of Chinese economic expectations, reports of surging infections in regional parts of China should be considered a demand threat to palladium. Even though the platinum market made a very impressive upside extension breakout to the highest level since June 17th on the back of gains in palladium yesterday, we remain skeptical of the market’s capacity to sustain gains.
COPPER
With many traders pointing to ongoing Chinese demand hope as cause for September copper to hold consolidation low support around $4.2325 last week, the bull camp should have garnered more lift from strong Chinese export data overnight. In other words, Chinese export data shows positive global economic conditions, which in turn could be an injection for the trade surplus driven Chinese economy.
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