GOLD / SILVER
In impressive performance both gold and silver prices this morning are tracking higher despite higher US treasury yields and a stronger dollar. However, the gold market should see support from news that Russian, Czech Republic, Indian, UAE, Philippine, and Uzbekistan gold reserves increased in September according to IMF research. It is also possible that gold and silver are receiving support from Democratic leadership indications that some form of a spending deal among the Democrats will be arrived at this week.
PALLADUM / PLATINUM
While the palladium market ranged sharply higher yesterday, the charts do not give off signs of a shift into a definitively constructive set up. However, palladium overnight has forged 3-day high and palladium ETF holdings increased by 1,200 ounces yesterday.
While a pair of supply-side issues are supporting the bull case in copper, information from the demand side of the equation favors the bear camp. While there is not specific evidence of Chinese state sales of copper overnight, the trade is fearful that the Chinese government will step in against the dizzying October rally of $0.77.
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