GOLD / SILVER
The path of least resistance remains down in gold as the Dollar looks to continue to rise off international flows toward US Treasuries. In fact, given gold and silver’s inability to rally along with equities Friday afternoon (off whispers of a stimulus passage), it is clear the bull camp is not easily enticed back into the market. While there were reports from India over the weekend regarding increased demand for jewelry (due to cheaper pricing) investors continued to flee from gold and silver ETF’s at the end of last week.
PLATINUM / PALLADIUM
Like the rest of the precious metal markets, the platinum market has a technical breakdown underway on its charts, with the approach of $1,100 unlikely to hold unless a reflation wave returns to commodities. However, the platinum market is the most likely precious metal market to bottom ahead, as its fundamentals and relatively cheap pricing should result in a bottom once the outside market negatives dissipate.
While the copper market did not post a fresh record spec and fund long positioning in last week’s positioning report, the net spec and fund long remains within proximity to all-time highs. On the other hand, from the last positioning report into the low last week, copper prices fell another $0.38 thereby moderating the net spec and fund overbought condition further.
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