GOLD / SILVER
The path of least resistance in the gold market is pointing down to start today following lower price action in Hong Kong and signs of ongoing weakness in Australian gold stock prices. However, there is favorable physical demand news overnight suggesting some retail bullion/jewelry shops in Southeast Asia are being caught without product in the face of a return of buyers who are seemingly content to chase gold despite its sharp price gains. The silver charts look more negative than the gold charts into the 2nd trading session of the week with silver yesterday clearly not benefiting from macroeconomic optimism and strength in energy prices.
PLATINUM / PALLADIUM
Despite a developing pattern of daily platinum ETF inflows, the PGM markets continue to exhibit action typical of physical commodities facing uncertain/uneven demand expectations. Even the supply-side of the equation remains confusing, but slightly bearish as most virus impacted mining operations are spooling up without significant problems. Comparatively speaking, the inflow to palladium ETF’s of 2,578 ounces last week is among the smallest inflow seen in all the precious metals markets.
The action in the copper market today should be discouraging to the bull camp as headlines over the last 24 hours suggest US/Chinese relations have improved with potential progress made on various trade issues. The lack of favorable reaction to the trade news and to further gains in US equities suggests the bear camp in copper has the prevailing edge to start today.
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