GOLD / SILVER
While the gold and silver markets have seemingly returned to classic flight-to-quality instruments early this week and will likely benefit from speculative buying throughout the coming session the bull camp should beware as we think gold and silver will need very severe tension to extend on the upside. On the other hand, the bull camp might be able to benefit from a quicker than expected result from the election and limited violence off the results.
PALLADIUM / PLATINUM
With palladium prices failing to sustain the July through early October rally in the face of stellar Chinese economic data released recently that highlights the market’s fear that the unending pandemic could throw non-Chinese economies back into recession and in turn cut global demand for auto-catalysts. Like the palladium market, the platinum market did not initially benefit from better-than-expected global PMI data but given the markets capacity to reject three probes below $850, it feels like a solid low has been found in platinum.
While strong Chinese PMI data helped copper throw off the developing fear of global slowing from the wave of infections of the last 2 weeks, the bull camp also had the added benefit of a sweep of positive global PMI readings! In fact, seeing stellar US PMI data combined with residual strength in US auto and housing sectors, the physical demand outlook for US copper consumption might cushion prices against today’s uncertainty.
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