GOLD / SILVER
Gold and silver have started off on a softer footing this morning, probably because of another upside extension in the US dollar. In fact, the US dollar has now reached the highest level since August 12th and it should be noted that the dollar recovery from a 4-month slide into August 12th coincided with the largest 4-day washout in gold this year (-$200)! While the silver market also showed a definitive reaction off yesterday slide below $26.45, the market is confronted with negative charts this morning, negative spillover from gold, signs of slack Indian retail silver demand, ongoing strength in the dollar as well as a 4th straight day of outflows from silver ETF holdings.
PLATINUM / PALLADIUM
The action in the palladium market on Tuesday should be very discouraging to the bull camp, as strength in gold, silver and platinum failed to cushion December palladium against a noted washout. In fact, the palladium market has not seen spillover lift from very bullish platinum fundamental supply and demand deficit projections. However, the World Platinum Investment Council has suggested it is possible that platinum might finally begin to take some industrial demand away from palladium due to the dramatic price differential.
With the December copper contract this morning remaining in the bottom half of yesterday’s reversal range, a new high in the US dollar, soft Chinese consumer price inflation readings overnight and the sudden halt of a late stage virus study, that leaves the bias in copper today pointing down.
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