Written Commentary
GOLD / SILVER
In Asia gold prices overnight climbed near 4-week highs and the US gold market looks to start on a slightly positive note perhaps because of the fresh downside extension in the US dollar. While the gold and silver markets have not garnered notable lift from inflationary developments, seeing 10-year highs in inflation readings in the euro zone is certainly a potential bullish catalyst for the gold and silver trade.
PALLADIUM / PLATINUM
Unfortunately for the bull camp, the recent recovery bounce in palladium prices was engineered on declining trading volume and falling open interest which could indicate a lack of bullish interest in the long side from levels above $2400. However as opposed to gold and silver, the palladium market seemed to get some bargain-hunting buying around the $2,400 level yesterday and at times the December contract was trading as much as $76 an ounce above the Monday morning lows. The platinum market continues to see volatile daily ETF flows, with platinum ETF holdings last week declining by 30,715 ounces.
COPPER
The copper market deserves to be tracking lower this morning following very disappointing Chinese manufacturing PMI data released overnight. However, the setback in copper prices is very modest considering the importance of Chinese copper demand and that suggests the bull camp has embraced the prospect of fresh stimulus from the Chinese government as they respond to the weakened economy.
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