GOLD / SILVER
With gold closing lower in Hong Kong and Shanghai and futures in the US starting off under moderate pressure, the path of least resistance is pointing down to start the new trading week. Clearly higher equities and strength in most physical commodities points to a risk on session, thereby putting gold and silver in a liquidation track.
PLATINUM / PALLADIUM
After seeing a-number of bullish long-term fundamental demand headlines over the last month, the palladium market has shown the inability to hold gains and has been unable to track higher with platinum. Obviously, the talk of rotation from expensive palladium to cheaper platinum, combined with the potential for long platinum/short palladium spread trading, leaves thick resistance hanging over the palladium contract.
Extensive volatility is expected to continue in copper with big picture macroeconomic issues at key junctions outside of China and China showing signs of moving to quell aggressive price gains in some industrial commodity prices. However, copper should see support from the risk on start to the trading week.
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