GOLD / SILVER
We continue to view the precious metal markets with skepticism, especially given the latest upside breakout in the dollar which has lifted the currency index up to the highest level since November 23rd. Clearly, the gold and silver markets have been less sensitive to the strength in the dollar recently, but with the upside breakout in the Dollar extending today, and gold/silver showing early weakness, the bear camp seems to have garnered an edge.
PLATINUM / PALLADIUM
With the palladium market testing and rejecting sub $2,600 pricing in each of the last 4 trading sessions that level becomes a key support and pivot point in today’s action. While April platinum at times yesterday showed strength, in the end platinum was unable to keep up with palladium and the Wednesday trade ultimately posted a continuation of the recent lower high and lower low pattern on the charts.
We see the technical failure of the $4.00 this morning as a significant signal of a pause in the markets support from the widely anticipated 2021 global refined deficit theme. It would appear as if reflation has turned into a mini deflationary condition in the marketplace and with signals of moderating (leveling out) economic recovery in China lower price action in copper is not surprising.
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