For today’s action, we suspect gold and silver will take signals from the direction of global equities and perhaps indirectly from action in US treasuries as treasuries have been the most consistent flight to quality instrument of the past 3 months. However, it could be difficult to gold and silver prices to extend in the wake of signs that a stimulus package will soon be agreed upon as that will likely send equities higher and Treasuries lower and ultimately exert selling pressure on gold and silver.
PLATINUM / PALLADIUM
While April platinum this morning is trading only marginally higher in the early going there is a positive buzz toward precious metals, the dollar is slightly weaker and platinum ETF’s saw a noted inflow yesterday. Like the platinum market, the palladium charts favor the bear camp with a series of lower highs and lower lows in place.
While Chinese economic data overnight improve from the prior month the magnitude of the improvement was insignificant and the several reports failed to meet expectations and that has thickened overhead resistance in the copper this morning.
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