GOLD / SILVER
We are not surprised that precious metal markets are under pressure again this morning, but we are surprised that gold prices are not sharply lower as the dollar appears to be poised to return to this week’s highs, investors continued to flee from gold and silver ETF’s and the fear of higher rates remains omnipresent.
PLATINUM / PALLADIUM
The PGM markets retain a bearish bias into today’s action with charts negative, dollar pressure returning and negative outside market pressure flowing from the weak action in gold and silver.
The magnitude of the overnight knockdown in the copper market is surprising from longer-term fundamental supply and demand perspectives, but is not surprising given short-term bearish developments, which include severe chart damage, a rising dollar, rising interest rate fears, a pattern of soft Chinese economic data, a significant 5725 ton single day increase in LME copper warehouse stocks overnight and a report circulating in Asia that copper pricing might have “overshot” fundamental levels.
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