GOLD / SILVER
The opening prices in gold and silver this morning fail to tell the tale of the overnight action as both markets exploded on the charts and then relinquished a large portion of those gains. In fact, as of this writing, the gold market is trading $16 below its overnight high while the silver market is trading an astounding one dollar below its overnight high. Gold ETF holdings yesterday increased for the 18th straight day, with the addition of 465,247 ounces. Similarly, silver ETF’s added 4.2 million ounces to their holdings bringing this year’s net purchases close to 230 million ounces.
PLATINUM / PALLADIUM
Like the gold and silver markets, the platinum market overnight also exploded higher but then failed to hold all-of the gains. The bull camp in the palladium market should be disappointed with the overnight action as the market failed to make a new high. While not a recent bull factor for PGM prices, the PGM ETF’s yesterday saw withdrawals suggesting that investment interest is not building along with futures price gains.
While the September copper contract did make a 7 day high overnight, the market appears to have been knocked back by the sudden eviction of the Chinese consulate in the city of Houston. However, the market should be underpinned as-a-result of backwardation signals, ongoing declines in daily LME copper warehouse stocks (LME stock levels are nearing the lowest levels in 12 years), a drop in quarterly copper production at Antofagasta (down 8.4%) and from evidence of an expanding world refined copper deficit in April from the International Copper Study Group yesterday.
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