Written Commentary
GOLD / SILVER
As we expected the uncertainty on the outcome of the election has extended beyond the close of voting and into the next trading session. Flight to quality buying potential remains in the offing for gold and silver in the hours ahead but as we have been suggesting for several sessions that bullish theme is fraught with the potential for sudden dissipation. In other words, we continue to see gold and silver as classic physical commodity markets that require forward movement in the global economy to rally.
PALLADIUM / PLATINUM
Not surprisingly, the palladium market benefited from the Tuesday extension of the late Monday rally in equities. While the palladium market earlier this week discounted favorable economic data as a signal of improving physical demand, the market might have seen some modest support from overnight news that Chinese Services PMI for October came in more than two points above September. The 21-day moving average in platinum up at $2,351.60 is a target for the bulls and a key pivot point while a failure below $2,198.50 could be-seen-as a trend reversing trade. Even the platinum market benefited from the risk on event during the US election day rally in equities but that bullish influence appears to have waned this morning.
COPPER
The copper market was not impressed with the improvement in the Chinese services PMI reading for October overnight and that suggests the market is currently distracted from the ebb and flow of Chinese copper demand influences and instead focused on to the uncertainty facing the US economy from its election.
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