Written Commentary
GOLD / SILVER
While the December gold contract has managed to hold within striking distance of the $1,800 level throughout this week, the charts present lower highs and lower lows into the last trading session of the week. Silver appears to be under more pressure than gold, as it has given back more of its post “flash-crash” gains on a percentage basis. The market formed a “death cross” recently with the 50-day moving average crossing below the 200-day.
PALLADIUM / PLATINUM
In retrospect the sharp decline in palladium prices this week is justified by news of reductions in vehicle production next month at Toyota which in turn extends the slackening demand pattern in palladium for another month. October platinum was also lower as well on Thursday and was close to taking out its low of 954 from August 9th, which is key support.
COPPER
Obviously, the copper market is significantly oversold from a short-term perspective, but we think it is justified in its slide by continued deterioration of global demand expectations and pressure from a rising Dollar. Fortunately for the bull camp a jump in daily LME copper warehouse stocks overnight was more than offset by a 7,457-ton weekly decline in Shanghai copper warehouse stocks as the trade is more interested in Shanghai supplies than London supplies.
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