Written Commentary
GOLD / SILVER
While the December gold contract forged a higher high overnight it has relinquished those gains and was chopping in negative territory very early in the US Monday trade. The initial strength today was likely the result of a fresh lower low for the move in the dollar index and perhaps because of initial explosive strength in US gasoline prices from the hurricane Ida hit. Even the December silver contract managed an upside breakout in a move that suggests the market may have seen a return of trading interest.
PALLADIUM / PLATINUM
Clearly the palladium market was not responsive to the news flowing from the Fed Symposium last week, which in turn highlights a market lacking a definitive dominating focus. While the platinum market appears to have forged a noted reversal from last week’s low, we view the bull case as primarily technical without fundamental substance.
COPPER
While the copper market has now forged a 7-day rally and a 10-day upside breakout this morning, overall fundamentals remain benign in the US and limiting from China. On the other hand, copper prices have merely returned to a 2-1/2-month-old sideways consolidation range and the $4.25 level appears to have become a noted value zone.
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