GOLD / SILVER
Against the backdrop of another record daily infection surge in the US, promises of more support from the US government and from the US Federal Reserve gold prices have begun the process of settling in above the $1800 level. With the gold market also reaching the highest level since 2011, and given the stellar quarterly gain in gold prices we suspect gold has found a strong position in the “hot markets” category for investors.
For a change in trend, the palladium and platinum markets garnered lift from strength in gold and silver. In fact, both platinum and palladium charts shifted bullish yesterday with palladium forging a 14 day high. Obviously the palladium market drafted support from positive Chinese PMI readings, as that helps to improve the outlook for Chinese auto sales and therefore improves demand for global auto catalyst feedstocks like palladium.
The copper market has made yet another higher high for the move overnight and has many technical analyst projecting prices back to the $2.80 level. Clearly the heart of the bull case this morning is another better than expected Chinese PMI data point overnight with the added copper demand kicker seen from growing speculation of a Chinese interest rate reduction.
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