Written Commentary
GOLD / SILVER
With December gold this morning breaking out to the upside with a trade above $1875, the next upside targeting from the charts is $1883.80. However, the silver action is not as impressive as in gold, but silver has lagged gold repeatedly over the last two months. Apparently, the markets are beginning to pick up “inflation speculation” which could become propagating in the event gold and silver prices manage periodic new highs for the move.
PALLADIUM/ PLATINUM
The palladium market was the stalwart performer in the precious metals complex on Monday. However, given the recent record net spec and fund short in palladium, we suspect a portion of the buying yesterday was stop loss buying. While the platinum market did not forge impressive gains like palladium to start the trading week, the charts remain bullish with higher lows and mostly higher highs.
COPPER
Clearly, the Biden/XI summit/conference call yielded little of significance for copper even though copper seemed to rally in anticipation of the meeting. However, there are those who see the conference call as a slight diffuser of tensions between the two countries and that is minimally supportive of copper. While LME copper warehouse stocks declined overnight the decline was smaller than recent readings but still leads to further tightening which is a major story considering the threat of a squeeze.
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