Written Commentary
GOLD / SILVER
It would appear as if gold and silver have come through the run-off election and through a wave of softer data from Europe and have retained upward momentum. Fresh downside breakouts in the Dollar and US Treasury bonds give off signals of major change in the structure of the markets with Treasury prices falling below levels seen just before the virus panic surfaced.
PLATINUM / PALLADIUM
The aggressive rallies in the PGM markets yesterday were at least partially if not mostly driven by the arrival of the new virus strain in South Africa with mining operations at the largest producer increasing the threat of disrupted global supply flows. The platinum rally would appear to be fanned by the massive jump in palladium which in turn threatens to push palladium prices back to a larger premium of $1,500 an ounce above platinum prices.
COPPER
With another new high for the move upside breakout on the charts this morning, it is clear that the copper trade has kept its favorable Chinese copper demand views intact despite disappointing Chinese Services PMI readings for December overnight. However, it is also possible that a big picture, broad-based physical commodity price rally is being sparked by reflation buying by hedge funds and speculators.
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