GOLD / SILVER
While gold and silver prices have rebounded this morning, we suspect the gains are the result of basic short covering buying and a measure of relief buying from a setback in the dollar and the recovery in treasuries. However, the exodus from gold and silver ETFs continues at a blistering pace in a sign that investor/speculative interest is draining on-a-daily basis.
PLATINUM / PALLADIUM
As indicated a-number-of times recently, the platinum market has shown persistent divergence with the rest of the precious metals markets and we attribute that to its bullish classic supply and demand set up. However, some of that bullishness was dented overnight when a major South African platinum producer indicated that the platinum market will see an industrial surplus in 2021. The palladium market also saw a net inflow to palladium ETF’s last week of 12,613 ounces which brought the year-to-date gain in holdings up to 5.1%.
We give the edge to the bear camp today in the copper market, as Chinese regulators have warned about excessive speculation in industrial metals markets and that news comes in the wake of reports that funds in China continue to throw money at the copper market on the long side.
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