Written Commentary
PRECIOUS METALS
Gold & Silver:
Like treasuries, the gold and silver market action over the last 36 hours appears to be a recovery bounce with in a recently formed downtrend channel. However, from a short-term trading perspective the bull camp has a slight edge this morning with further weakening of the dollar and a modest bounce in treasury prices. Therefore, the bull camp needs fundamental and technical help from a Goldilocks near expectations payroll report and generally positive vibes flowing from the US equity markets.
BASE METALS
Copper:
While London prices remain firm and covering around all-time high levels, the US market continues to be out of relative favor. Obviously, the US market has benefited diffidently from the announcement of a possible copper import tariff and a decision by the US on tariffs could result in a temporary blowoff rally since. In the near-term, the bull camp has an edge with fresh supply side concerns fostered by LME copper warehouse stocks falling by 475 tons and Shanghai copper warehouse stocks falling by 9428 tons (13%).
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