GOLD / SILVER
With the dollar building a solid consolidation over the prior five trading sessions and then coming out of that formation to the upside, the impact of currencies on gold and silver is negative to start today. However, the gold market should garner support from news that Hong Kong September net gold exports to China came in at 34.7 tons versus 21.8 in the previous month. The gold and silver markets drafted some buying interest from the potential stimulus benefits of Chinese liquidity injections yesterday, but there were also some reports of tight supplies at the physical level.
PALLADIUM / PLATINUM
The palladium market forged an extremely narrow trading range yesterday and remains within proximity to last week’s consolidation lows in a fashion that suggest the bear camp has a slight edge. today Even though the Chinese stimulus provided support to other physical commodities, platinum and palladium failed to benefit from the Chinese assistance yesterday as demand expectations remain limited by the shortage of vehicle chips.
While the copper market should have derived support from news of Chinese liquidity/stimulus efforts yesterday, the December contract this morning has already breached a key pivot point support level at $4.50 and could be vulnerable to lower low action later today. Hindering copper to start today is a 3-week low in aluminum, soft energy prices and a slightly firmer dollar.
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