GOLD & SILVER
If metal market views begin to think rapidly rising interest rates might not deter inflation, that could begin to discourage aggressive and very confident selling interest in gold and silver. Fortunately for the bull camp, hawkish market sentiment from the US central bank will likely moderate this week as the US Fed entered its blackout period over the weekend ahead of the July 26th – July 27th meeting. At least to start today, gold and silver are benefiting from further weakness in the dollar which at times overnight had reached 5-day lows! On the other hand, hawkish foreign central bank dialogue and continued private analyst hawkish dialogue will keep a lid on gold and silver prices.
PALLADIUM & PLATINUM
Despite the initial lift from positive outside market forces, the palladium market maintains an overall bearish technical and fundamental condition. In fact, investors remain negative toward both palladium and platinum with PGM ETF holdings last week posting 44,289 ounces moving out of platinum ETFS putting the year-to-date contraction in holdings at 9.4%. While the platinum market from the last COT positioning report into the low last week only declined by $22, that washout likely resulted in a record “net spec and fund short”. Unfortunately for the bull camp, the platinum market has little fundamental news flow and what news flow there is creates demand concern.
COPPER
With the copper market becoming significantly short-term and intermediately oversold from technical perspectives last week, and most fundamentals remaining distinctly bearish rallies are likely to be temporary. In fact, a pattern of daily increases in Chinese infection counts increases the prospect of lockdowns in China and fresh economic headwind fears. However, the market this morning caught distinct lift from positive global market psychology and from reports the Chinese central bank will continue to provide supportive monetary policy.
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