Written Commentary
GOLD / SILVER
October gold has put in a series of higher highs and higher lows since Monday’s crash and has clawed back almost all of Monday’s losses, and it seems to be set for further consolidation of the August selloff. A couple of key inflation indicators this week showed the highest year over year increases since the recovery off the Great Recession in 2008, and this prompted expectations that it would accelerate any Fed tightening moves, but the gold market appeared to ignore it.
COPPER
Copper prices remain on track for a positive weekly reversal, as another decline in Shanghai copper stocks can help the market go into the weekend on an upbeat note. September copper posted a moderate loss on Thursday after lukewarm results for UK and Euro zone industrial production, back-to-back modest losses in the Shanghai Composite stock index, and were reports that a major Chinese container terminal was shut down due to a worker testing positive for COVID.
PALLADIUM / PLATINUM
September palladium once again failed to break through a key moving average and break out of its recent consolidation. China’s shutdown of a major port due to a Covid case raises new concerns about the availability of chips needed for auto production. October platinum has staged a decent recovery off an extremely oversold condition, but it could be running up against some key resistance areas soon.
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