GOLD & SILVER
Gold and silver consolidated inside Tuesday’s range overnight but with a weaker tone. The dollar has consolidated as the market was awaiting the release of the FOMC meeting minutes later today for clues to how policy makers sensitivity to weaker economic data, and this has kept the precious metals trade choppy. US economic data was mixed on Tuesday, with a dismal housing starts number but strong earnings from Walmart and Home Depot and better than expected industrial production and capacity utilization numbers.
PALLADIUM & PLATINUM
September palladium extended to the downside on Tuesday but ended up back near unchanged on the day. October platinum was also started out weaker but made back to unchanged. Both markets were choppy overnight, and they are starting off with a weak tone. Like gold and silver, selling eased in the PGMs yesterday as the dollar pulled back and the trade became cautious ahead of the FOMC meeting minute release. The markets may have also been encouraged by the stronger than expected US industrial production on ideas that it bodes well for auto catalyst demand.
Copper prices held to hold their ground above Monday’s low, but they are lower this morning, and they clearly need to see stronger global risk sentiment to sustain their upside momentum. September copper trading in a tight, inside-day range on Tuesday and finished with a modest gain, breaking a two-day losing streak. Monday’s weak set of Chinese economic data continues to weigh on prices, as it projected a pullback in Chinese copper demand, particularly in the housing and property sectors.
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