GOLD / SILVER
Despite another upside extension in the dollar index overnight, December gold prices remain within striking distance of this week’s range up high. The bull camp enters the last trading session of the week confident following bullish comments on gold from both UBS and Goldman.
While the PGM markets have not benefited significantly from the current inflationary bulge, the palladium market has built a considerable consolidation above the $2,000 level on the charts and has seen open interest build significantly following the washout last month. Adding into the upward bias in palladium is news that South African PGM output in September declined by 7.5%. Clearly, the platinum market is the leadership market within the PGM complex as it surged on Wednesday and returned to the $1,100 level again in Thursday’s trade.
Copper should be supported because of another decline in daily LME copper warehouse stocks of 3,875 tons but could be partially disappointed in a very minor 555 ton increase in weekly Shanghai copper stocks. In another limiting development overnight iron ore prices continue to plummet, indirectly dampening bullish sentiment toward copper and other heavy industrial materials.
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