GOLD / SILVER
While the gold market has not made a new high for the move overnight, prices sit within close proximity to the highs with the charts leaning in favor of the bull camp. The market should draft support from news that ETF’s added 185,028 ounces to their holdings yesterday leaving net purchases year to date at 19.1 million ounces. While it could be extremely difficult to arrive at another stimulus package from the US quickly, the US President indicated another package is needed and that should add fuel to the gold bull’s story as that increases US debt and provides another wave of stimulus.
While gold and silver ETF holdings continue a pattern of inflows, the PGM markets are simply not participating in that investment flow. Fortunately for the bull camp in palladium this morning, global equity markets overnight gave off a risk on vibe and the progress with US/Chinese trade talks adds to the bullish case. However the charts in the palladium market still favor the bear camp with the June pattern showing a slow erosive consolidation with lower highs and lower lows.
Obviously the copper market is cheered by the favorable twist in the latest US/Chinese trade saga with US officials turning more optimistic after indicating the deal is still “intact”. We suspect that a risk on vibe from gains throughout global equity markets, another notable decline in daily LME copper warehouse stocks and chatter about a possible $1 trillion US stimulus package will leave the bull camp confident throughout today’s trade.
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