Written Commentary
The bears hold an edge from charts and fundamentals
GOLD / SILVER
While the gold and silver markets are only marginally lower to start today, a fresh upside breakout in the dollar, renewed fears of rising US rates and Asian gold discount pricing leaves the edge with the bear camp today. Certainly, the gold and silver markets saw temporary lift from the violation of Taiwanese airspace by the Chinese yesterday, but that issue does not appear to have legs.
PLATINUM / PALLADIUM
The negative shift in overall market psychology yesterday has pulled palladium prices back down from their highs. In fact, the market should have surged into new high ground following news of record US light truck sales and very strong vehicle sales (highest since 2005) for April. Like the palladium market, July platinum also forged an upside breakout yesterday, but was knocked back from that high in a fashion that suggests an intermediate top could be in place.
COPPER
With a new higher high for the move early today, another noted decline in daily LME copper warehouse stocks, a London copper trade above $10,000 and potential supply threats in Chile from government royalty charges, the bull camp regains the edge. All things considered, the action in the copper market on Tuesday was a testament to the staying power of the bull camp.
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