GOLD & SILVER
Uncertainty has taken a big jump over the last 24-48 hours, and gold seems to be responding. The passing of Queen Elizabeth, a new UK Prime Minister, and an expanding energy crisis in Europe that has been described as the worst crisis since World War II appear to have sparked safe haven buying in gold. It also helps gold’s case that the dollar gapped lower overnight to its lowest level since August 31. The selloff was spurred on by the ECB raising its key interest rate by 75 basis points, its largest increase ever. This sent the euro sharply higher.
Platinum has led the metals higher this week. October platinum has closed higher for four sessions in a row and was higher again overnight. December palladium broke out of its recent range on Thursday and followed through with modest gains in the overnight session. Earlier this week, the World Platinum Investment Council raised its forecast for an annual global platinum surplus, but it also stated that a shortage in the metal continues, and it pointed to strong growth in autocatalyst usage.
Copper has managed a recovery move and is on-track for a positive weekly reversal. With supportive demand news overnight from China, we would not be surprised to see further gains today. December copper broke out of a near-term consolidation on Thursday to post a strong gain, and it has followed through with a rally to a 1 1/2 week high early today. Chinese inflation data came in below trade forecasts, which along with the government’s moves to increase investment has provided a boost to that nation’s demand prospects.
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