GOLD / SILVER
While we remain skeptical of the bull case in gold and silver, distinct follow-through gains today give added credence to the argument that hope for fiscal and monetary stimulus remains in control for another session. In fact, given the magnitude of the overnight gains it is possible that the markets are quickly moving to factor in “action” from Congress.
PLATINUM / PALLADIUM
While the platinum and palladium markets appear to be rising in sync with gold and silver prices, we are of the opinion that the gains in PGM prices are being accentuated by signs that industrial input prices are entering into the beginning of a broad rally.
While copper prices have regained some bullish traction this morning, the action in the copper market yesterday was disappointing to the bull camp. However, support on the charts was fortified from favorable Chinese factory data Tuesday, ongoing positive global equity market action, a downside breakout in the dollar and unending hope for a long-awaited US stimulus package before adjournment on Friday.
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