Written Commentary
GOLD / SILVER
While some traders are beginning to express concern over the overbought technical condition of gold (with short-term technical measures flashing extreme readings) press coverage has been so intense that additional buying interest should not be difficult to find.In the silver market, the explosion in volatility has been surprising but traders should expect more of the same ahead as a wave of silver longs might have entered in significant numbers between $21.75 and $23.75 which could mean price action around those pivot points could be very severe.
PLATINUM / PALLADIUM
While the palladium market is showing some corrective action early today, the market should draft some support from news that ETF holdings increased for the 5th straight session, strength in gold and silver and from the latest new low for the move in the dollar. Like the gold and silver markets, the PGM markets has seen a growing number of bullish forecasts flowing in the press. the platinum market already had a moderately large net spec long position in place and has built its net spec and fund long positioning notably in the past 6 trading sessions.
COPPER
On one hand, the copper market was presented with impressive “V Bottom” descriptions of the Chinese recovery while other analysts indicate that China might be losing momentum. Nonetheless the market is likely to draft support from another daily decline in LME copper warehouse stocks (the 31st straight decline), weakness in the dollar, a decline in southern copper output of 1.3% in the 2nd quarter, and from hope for fresh assistance from the US Federal Reserve meeting.
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