Written Commentary
GOLD / SILVER
The path of least resistance looks to be pointing down to start the new trading week in gold and silver. The dollar is perched near upside breakout ground on the charts, there are fears of lockdown in Europe, the oil markets are relatively calm, and treasuries are showing a minimal uptick in yields. On the positive side of the ledger, Chinese gold imports reached the highest level since 2019, oil prices are higher and gold ETFs on Friday increased their holdings by the most in a single day (327,437 ounces) since January 15th.
PALLADIUM / PLATINUM
While the palladium market did not track tightly with gold in the early November rally, the liquidation in crude oil and gold at the end of last week yanked the rug out from underneath a vulnerable palladium bull case. Like the palladium market, platinum also broke through several layers of support late last week and would appear to have a downside target of $1,022.70.
COPPER
With the rally in copper at the end of last week taking place in the face of a significant washout in a very long list of physical commodities, the bull camp has apparently more fortitude than was expected. It should be noted that Chinese copper prices posted a record on Friday but fell back slightly this morning.
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