GOLD / SILVER
The gold market has started off on a weaker footing today despite news that Chinese net gold imports in September increased to 11.1 tons versus 1.1 tons in August. In fact, Chinese total gold imports through Hong Kong rose to 16.1 tons and traders should be aware that China began to allow gold imports via other ports than Hong Kong within the last 4 years. With noted damage on the silver charts yesterday and an outflow from silver ETF’s yesterday, the bias is down and the bull camp will need to see a better than expected Durable goods reading from the US today to respect yesterday’s lows at $24.14.
PALLADIUM / PLATINUM
While we see the bias pointing down in palladium in the sessions ahead, the market did not seem to be as negatively impacted as other metals and commodity markets on Monday. We suspect part of the lack of downside on Monday was the result of a smallish spec and fund long and some measure of support was seen from the idea that the Chinese economy and Chinese car sales are likely to be partially immune to the issues undermining the US and Europe in the near term. In January platinum the reversal from last week’s highs has been severe enough that the latest spec and fund long of 13,914 should yield enough selling to throw prices down to $850.
After showing consistent immunity to non-Chinese economic slowing fears, the copper market yesterday extended the recent washout to a third straight session. In fact, with the market remaining pinned down to yesterday’s spike lows this morning it would appear prices are be poised for even more declines in the coming session. Unfortunately for the bull camp the prospect of favorable Chinese copper demand news from the Chinese planning meeting might not be seen until the conclusion of that meeting.
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