Mixed Outlook in Metals

A lack of fear of rising rates after hot CPI favors the bulls

GOLD / SILVER

While the dollar index overnight did not make a new high for the move prices sit just under 7-day highs and have giving off the impression of an upside breakout and extension ahead to the 91.00 level. In addition to divergence between gold and silver at the end of last week, the gold bulls were also undermined as-a-result of 7 talk of a global minimum tax.

PLATINUM / PALLADIUM

The palladium market flared on Friday but surrendered all the gains as the trade continues to fret over the lack of expanding growth in China, but also because of the potential for a breakout of the new coronavirus variant in southern China. Like the palladium and the gold market, the platinum charts remain negative and a sustained downtrend from the May high continues to unfold.

COPPER

All things considered, the copper market has held up impressively in the face of a strike settlement in Chile, fear of a possible virus breakout in southern China and in the face of threats from the Chinese government to release strategic material supplies in-an-attempt to knock prices down. As indicated already, the copper market has managed to stand up to a-number-of bearish fundamental developments and in turn manage to consolidate and waffle around the $4.50 level for nearly 4 weeks.