Written Commentary
GOLD / SILVER
With June gold extending into a higher high this morning after posting a significant range up breakout yesterday, the market appears to have upside momentum. Perhaps the market is drafting support from an annual Fed report which pointed to rising asset prices as a potential risk factor for the economy, but the most likely bullish force is signs that the Chinese economy continues to surge with the posting of significant increases in imports and exports. Strong Chinese trade figures are clearly a path to upward revisions in physical gold and silver demand in the coming months.
PLATINUM / PALLADIUM
The palladium market appears to remain within a corrective track with prices initially waffling around both sides of yesterday’s sharply lower close. Unfortunately for the bull camp, interest in palladium and platinum ETFs remains very anemic and that in turn reduces the breadth of buying fuel.
COPPER
Obviously, a new all-time high price this morning is justified by very strong Chinese trade data, even if recent Chinese copper imports disappointed with a 12.2% month over month decline. In short, the copper market continues to spike higher off the likely expansion of the world refined copper deficit.
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