GOLD / SILVER
It is possible that the gold and silver markets will avoid a significant extension of flight to quality liquidation today perhaps because of thinner holiday type trade. However, as we have indicated a-number-of times, the gold and silver trade has had a tendency of very violent washouts and the current wave is likely to exhibit that same tendency.
While platinum ETF’s have not been of interest to investors this year, it should be noted that platinum ETF’s yesterday saw an inflow of 32,225 ounces. The jump is a very significant jump relative to the daily changes of the last year and it should also be noted that platinum ETF holdings year to data have risen 9.5% over year ago levels and that could be signaling a broadening of interest for platinum beyond futures! As for the palladium market, we suspect it will continue to be held down by spread action with platinum but also because of its relative-close-proximity to its all-time highs.
The copper uptrend looks to continue, but we suspect the next COT positioning report will reveal a significant jump in the net spec and fund long and a significant jump in the magnitude of Record long jump beyond the old record. In fact, into the high yesterday the December copper contract had gained $0.11 from the last COT report mark off.
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