Written Commentary
GOLD / SILVER
Seeing gold and silver extend gains today after a significant pulse up trade yesterday should embolden the bull camp and should threaten the bear camp. In fact, the gold market has managed the upside pulse today without a downside breakout in the dollar and in the face of lower energies and lower equities.
PALLADIUM / PLATINUM
As we suggested several times over the past 2 weeks, the net spec and fund short position in palladium was extreme and at record levels before the brunt of this week’s plunge and therefore the net spec and fund short adjusted into the Wednesday low is likely to be several multiples larger than a day’s trading volume. Unfortunately for the bull camp, daily platinum ETF holdings failed to confirm the bullish upside thrust in futures yesterday with another inflow.
COPPER
While the copper market is showing signs of strength this morning it has encountered the 200-day moving average at $4.3260. Fortunately for the bull camp both LME and Shanghai copper stocks declined overnight with the 6,800 tons decline in Shanghai copper stocks offsetting a portion of the recent pattern of daily “builds” in LME copper warehouse stocks.
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