Written Commentary
GOLD / SILVER
We continue to think gold and silver lack a definitive fundamental focus, but we think the charts favor the bear camp to start today. In fact, gold and silver came under pressure yesterday as a result of a significant washout in equities and from fears of a return to lock downs and those fears were given added credence by the overnight health warning from the WHO.
PALLADIUM / PLATINUM
In a slightly bullish technical development, the September palladium contract has forged a 3-day high overnight, but investors remain cool toward palladium, with palladium ETF holdings yesterday increasing by a mere 947 ounces. However, Palladium ETF holdings remain 9% higher on the year and the palladium market is relatively small and a moderate increase in investment holdings should be a cushion to prices.
COPPER
We are surprised to see September copper up on the day in the wake of news that the Chinese government will auction 30,000 tons of copper next Thursday. Apparently, the Chinese government is threatening speculators they think are responsible for high material costs, and in the event global equities resume. Aggressive declines that could throw September copper right back down to the $4.20 level.
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