Written Commentary
GOLD / SILVER
Yesterday’s action in the gold market is telling of the real sentiment in the gold market as prices failed to rally along with other precious metal prices early on, and then failed to rally later in the session off a very significant downside reversal in the US dollar. With disappointing Chinese corporate profits overnight, lower equities and mixed physical commodities, we see a relatively quiet session which in turn favors the bear camp.
PALLADIUM / PLATINUM
Fortunately for the bull camp, the palladium market overnight rejected a sharp slide to a 5-day low and in the process regained what has become a critical pivot point zone around $2650. We suspect the market is undermined as-a-result of news that Anglo-American platinum LTD saw its total PGM production jump by 28% in the first half of the year.
COPPER
The rally in copper prices to start the trading week was very impressive and perhaps suspicious. However, there is a potential supply disruption threat in Chile at the Escondida copper mine (labor conflict) and the trade is apparently expecting to see a significant jump in Chinese copper demand as the country is forced to rebuild infrastructure and housing damaged by flooding and by typhoon damage encountered over the weekend.
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