GOLD / SILVER
The December gold contract starts another trading session waffling around both sides of its 200-day moving average of $1818.20. While the dollar has not made a fresh lower low for the move this morning it sits within 6 ticks of a downside breakout and is likely lending support to gold and silver prices.
PALLADIUM / PLATINUM
In retrospect, the December palladium contract deserved yesterday’s weaker close and a fresh lower move for the move following a US total annualized vehicle sales reading for August of only 13.1 million units, points (ongoing restricted auto catalyst demand). We are not as bullish toward platinum on a break as we are palladium on a break as we see the most likely action in platinum to be a continuation of sideways chop.
Surprisingly, the copper market this morning has traded in positive territory and has held above the $4.20 level in the face of news that some labor negotiations have resulted in deals, and it has held in the face of news that other wage talks in Chile have resumed. While copper should see some support from higher aluminum prices in China, Europe, and the Midwestern US today (European aluminum prices reached a 10 year high), the strength appears to be largely the result of a lingering strike in Chile and because of Hurricane Ida transportation problems in the US.
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