Written Commentary
GOLD / SILVER
While the charts show some signs of lost upside momentum this morning, the August gold contract remains within $14 of a contract high which in turn borders on 8 year highs! While the bullish news flow from the ETF front slowed with some outflow seen last week, overnight stories have indicated ETF inflows in the current quarter have posted the largest quarterly increase since 2009. On Friday gold ETF’s added 180,678 ounces to their holdings and then added 56,723 ounces yesterday bringing the net purchases this year to almost 20 million ounces!
PLATINUM / PALLADIUM
The palladium charts turned positive for the first time in several days with the range up move yesterday which in turn brought prices in the September contract back above the March through current downtrend channel resistance line for the first time since this year’s high. Holding back the palladium market is a negative story overnight regarding “plunging auto sales” but we suspect that negative is more than offset by favorable Chinese manufacturing readings.
COPPER
The copper market has forged another higher high for the move to start today, with prices now reaching up to the highest level since January 24th. Obviously favorable Chinese manufacturing and non-manufacturing data provides fresh copper demand lift, but the market should also see support from yet another decline in LME copper warehouse stocks of 3,000 tons. In fact economist are even pointing out improved Chinese exports as a sign that China is now seeing some assistance in its recovery effort from overseas activity.
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