Written Commentary
GOLD / SILVER
While the gold market has not made a higher high compared to Friday’s action, prices are holding in positive territory early on and are printing trades above the psychologically important $1,800. Obviously, a setback in US Treasury yields combined with a temporary swoon in the Dollar provided gold and silver with outside market support to end last week. In fact, overnight the Dollar forged a lower low and that could provide gold and silver with an underpin for prices.
PALLADIUM / PLATINUM
We leave the edge with the bear camp in the palladium market as last week’s initial washout failed to spark bargain-hunting buying. However, a pattern of inflows to both palladium and platinum ETFs recently should be noted as that factor has not been a focal point of the trade lately.
COPPER
With a major failure at the end of last week and little in the way of chart support until $4.40, December copper looks to be controlled by the bear camp. However, both Shanghai and LME copper warehouse stocks continue to decline (Shanghai stocks at the lowest since 2009) and the threat of a short squeeze on the London exchange should not be discounted.
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