GOLD / SILVER
Despite what appears to be further progress on a vaccine and generally higher global equities, the gold market has returned to 5 day highs and would appear to be poised to retest last week’s 8 year highs. In fact the gold market is tracking higher this morning despite a prediction from the world Gold Council that consumer demand for gold will remain soft in the 2nd half of the year due to the ongoing coronavirus surge. The chart action in the silver market is even more bullish than in gold, with prices this morning nearly taking out recent highs which in turn were the highest prices since last September. While we see the investment component and spillover lift from gold as the primary bullish forces, production at 2 key silver mining companies declined in reports overnight and therefore we see silver prices rising above $20.00 directly ahead.
While the PGM markets were certainly under spillover pressure from gold and silver for most of the Tuesday trading session, the action appeared to be the result of classic physical commodity market demand fears from the US infection rise. However positive vaccine news overnight did not prompt a positive reaction in palladium and that highlights lingering bearishness. The platinum market forged a fresh 6 day low yesterday and appears to be poised for a decline back toward the consolidation lows on top of $800.
With the copper market falling back from recent highs that were posted on very significant trading volume, it would appear as if prices are faced with a key junction directly ahead. Obviously further escalation of US/Chinese tensions from Hong Kong sanctions and fresh retaliation threats from China fosters some concern for the Chinese recovery and Chinese copper demand.
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