GOLD / SILVER
The overall environment for gold and silver entering the last trading session of the week remains bearish with huge declines on the charts, another definitive upside breakout in the dollar early on, indications from the US Federal Reserve Chairman that the rate rise is not disorderly (which has fostered views that the Fed will allow for even more gains in rates) and yet another day of outflows from gold ETF holdings.
PLATINUM / PALLADIUM
Obviously, the path of least resistance in platinum remains down to start last trading session of the week as outside markets are applying pressure and platinum ETF’s yesterday saw a very sizable outflow of 8,384 ounces lowering the year-to-date gain in ETF holdings to only 0.7%. Fortunately for the bull camp in palladium, the latest net spec and fund long was virtually flat at 1,335 contracts and that appears to have limited declines in palladium this week.
We are somewhat surprised with the copper market’s capacity to regain positive territory this morning in the wake of another significant jump in weekly Shanghai copper warehouse stocks as that insinuates soft demand on the ground in China. However, the market appears to be drafting some support from Chinese growth targeting of 6% for this year and from news that the Chinese government intends to add 11 million urban jobs this year in effort to bring inland areas toward the growth seen along the coast.
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