Written Commentary
GOLD / SILVER
Despite a fresh downside breakout extension in the dollar index this morning gold market is starting out under modest pressure today and we suspect that is partially the result of the significant compacted overdone condition from yesterday’s rally. However, there appears to be a risk off overall market vibe in place this morning with nearly all physical commodity markets under pressure and that suggests the bear camp has a slight edge to start today.
PALLADIUM / PLATINUM
While the palladium market surged sharply higher along with gold and silver yesterday, the market reversed aggressively, and prices eventually traded a surprising $37 an ounce below their initial highs. Like the palladium market, the platinum market also ranged up sharply and reversed course definitively in a fashion that suggests the bull camp had little interest in following gold and silver prices higher. Surprisingly, the platinum market managed the initial gains despite overnight news that 95,224 ounces had been liquidated from platinum ETF holdings.
COPPER
In addition to lift from big picture macroeconomic optimism (from surging equities, a falling dollar and strength in many other physical commodities) copper prices were also lifted off news that a BHP Chilean union was set to vote on a strike. Apparently, the strike vote will proceed into July 31st and that should leave a supply-side bid under copper prices.
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