Written Commentary
PLATINUM / PALLADIUM
With a fresh higher high for the move overnight and the highest price since August 10th the charts in palladium have turned positive even though strong volume has not confirmed the last 4 days rally as a widely embraced move. However, it is likely that another positive Chinese data point overnight combined with talk of growing Chinese exports is finally rekindling auto catalyst demand hopes in China. Platinum has also broken out to the upside overnight and in the process has climbed above a key 30-day downtrend channel resistance line and managed that rally in the face of news that Zimbabwe’s largest platinum mine continues to skirt the pandemic impact with consistent production.
GOLD / SILVER
Overnight gold prices closed higher in Hong Kong and Shanghai, the Perth mint reported strong August gold coin sales (reportedly off virus fears) and the Dollar forged another lower low for the move and that sets a positive track for US gold trading today. Apparently, the Perth Mint pegged gold coin sales to be the highest in 4 months while silver sales in August at the Mint were slightly lower than July. Yesterday gold ETF’s added 94,443 ounces the gold to their holdings for the fourth straight day of inflow. Silver ETF’s also added 1.46 million ounces to their holdings bringing net purchases to date to 286.6 million ounces.
COPPER
The Chinese PMI reading and fresh gains in Shanghai equity markets provides the copper market with fresh bullish incentive into the 2nd trading session of the week. While a 2-year high in copper sends off some technical warning signals to portions of the bull camp, the modern trade all-time high in copper prices was $4.63 and 2 1/2 year highs were $3.32 and therefore copper prices are not extreme yet. In fact, the trade is seeing a noted tightening supply following some Covid-19 mining closures and LME copper warehouse stocks at 15-year lows.
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