Written Commentary
GOLD / SILVER
With a fresh downside extension in the dollar, a significant jump in US infections (171,000 Wednesday) and economic uncertainty from soft European data, gold starts the Friday trading session on a positive track. However, we see a very major junction today in gold and silver prices, with the subject of “tapering or not tapering” the dominating focus of the trade.
PALLADIUM / PLATINUM
Like the gold and silver trade yesterday, the PGM markets disappointed with price declines in the face of new all-time highs in equities, positive US jobs data and a downside breakout in the dollar. Going forward, the palladium market should derive minimal support from Impala platinum predictions of ongoing tightening in palladium and rhodium.
COPPER
While the copper market should see support following news that Codelco copper production in July fell relative to the prior month, with the world’s largest mine also posting production 17% below year ago levels. Furthermore, overall Peru copper output in July declined by 4.3% versus year ago data.
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